Australian Embassy
Mongolia

Extractives

Project fund: $AUD 4,102,000

Project Term: March 2015- June 2018

Project geographical coverage: Mongolia

National beneficiaries: Ministry of Mining and Heavy Industry, Mineral Resources and Petroleum Authority and exploration and mining companies

 

Mongolia’s economy is heavily reliant on the mining sector and international commodity prices. In 2015, 20 per cent of GDP is linked to extractives and extractive related industries and 87 per cent of exports consist of mineral resources.

With such a dominant position in the economy a well-managed extractives sector is crucial to Mongolia’s long-term prosperity and reducing poverty.

To obtain the most from the sector, Australia is pleased to assist Mongolia improve to investment climate for both domestic and foreign firms, improve the efficiency and reduce the risk of exploration and production, improve opportunities for Mongolians to find skilled employment, and improve the technical capabilities of both the Government and the Mongolian private sector to ensure extractives development leads to national as well as local development opportunities.

The Australia Mongolia Extractives Program (AMEP) is Australia’s flagship vehicle to assist maximise social and economic development through improved management of the extractives sector.

AMEP focuses on geoscience, mining administration including improved safety for workers, and policy development. AMEP is a flexible facility to provide on-demand technical support. Adam Smith International (ASI), has been contracted by Australia to implement AMEP.

Since commencing in March 2015, AMEP has:

  1. Assisted the Ministry of Mining and Heavy Industry develop a strategy for improving gold exploration and extraction and for maximising the benefits from the gold sector for the people of Mongolia.

    The strategy provides specific recommendations on short, medium and long term policy, legal and regulatory options to expand exploration in the gold sector. The Ministry of Mining and Heavy Industry submitted the strategy to Government Cabinet for approval.

  2. Assisted the Ministry of Mining and Heavy Industry and Mineral Resources and Petroleum Authority review and update the safety regulations in mineral processing plants;  a total of 60 representatives from the Ministry of Mining and Heavy Industry; Mineral Resources and Petroleum Authority; School of Geology and Mining, Mongolian University of Science and Technology; professional associations (including coal, gold, and copper); and representatives from mineral processing plants participated in reviewing and updating safety regulations.

  3. Worked with the Ministry of Mining and Heavy Industry and Mineral Resources and Petroleum Authority to develop a communications strategy to improve the flow of mining related information to the public.  The activity assisted the government to improve dissemination of information concerning relevant legislation and policies in a user friendly way. 

  4. Assisted the Ministry of Mining and Heavy Industry and Mineral Resources to assess mineral valuation codes and initiate the introduction of an appropriate mineral valuation system.  This activity will lead to a streamlined process for pricing and taxing minerals, increasing revenue for the government to spend on social services.

  5. Worked with the Mineral Resources and Petroleum Authority to train staff from mining exploration companies in reporting geological exploration in line with data requirements by MRPAM.  The activity supported the Mineral Resources and Petroleum Authority in training 500 staff from 300 exploration companies in online reporting using newly established e-reporting database of the Authority. Mongolia has recently shifted from hard copy to online reporting for geological exploration which is designed to reduce time and cost.

  6. Working with the Government of Mongolia in establishing the National Geological Survey.

This activity is supporting the Government of Mongolia to establish an National Geological Survey for expanding mineral resource base and boosting mineral sector in Mongolia.

Geoscience Australia partnered with the Ministry of Mining and Heavy Industry and the Mineral Resources and Petroleum Authority to review geo-data management. The activity is continuing to advance the development of a strategy, a business plan and a identifying a model for the National Geological Survey.

 

For further information on assistance to the Extractives Sector please click here.