Project fund: $AUD 5,032,000
Project Term: March 2015- April 2019
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. Since 2011 the minerals account for up to 20% of GDP and comprise well over 80 percent of exports.
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 the 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:
- 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 strategy was adopted in 2016. Gold sales to the Mongol Bank have increased though no formal evidence is available on the strategy’s contribution to increased gold sales.
- Assisted the Ministry of Mining and Heavy Industry and the Mineral Resources and Petroleum Authority review and update the safety regulations in mineral processing plants. A total of 120 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.
Assisted the Ministry of Mining and Heavy Industry and the Mineral Resources and Petroleum Authority 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.
- Working with the Ministry of Mining and Heavy Industry and the Mineral Resources and Petroleum Authority to develop a communications strategy to improve the flow of mining related information to the public. This activity will assist the government to improve the dissemination of information concerning relevant legislation and policies in a user friendly way.
- Working with the Government of Mongolia in establishing the National Geological Survey (NGS). As a part of this comprehensive activity, assisted the Assisted the Ministry of Mining and Heavy Industry to conduct a technical and institutional audit of the Central Geological Laboratory, assess needs and priority actions and draft an action plan for establishing the NGS.
- Worked with the Mineral Resources and Petroleum Authority to establish MonGeoCat, Mongolia’s Geological Metadata Catalogue and provided training to 500 staff from 300 exploration companies and government organisations to use the system. MonGeoCat is a publicly accessible metadata base and helps to reduce time and costs to get geological data and maps. It was awarded Geospatial World Excellence Award 2017.
- Supported Mongolian and government officials to attend the International Mining and Resources Conference 2017, Melbourne.
For further information on assistance to the Extractives Sector please click here.