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BRP was incorporated in 2014 in Ulaanbaatar and became a diversified consultancy firm with focus on sustainable practices in agriculture, banking, energy, environment sectors and international development area, yet mining remains as our key area of expertise to date. Is there a mandatory framework for GHG reporting for the mining industry in the country? Mongolia has signed up to the Paris Agreement, committing to reduce its GHG emissions by 22.7% by 2030. However, at the industry level, there is no specific framework dictating emission reduction. The mining sector as a huge energy consumer, in some case energy producer, is amenable to some requirements included in the Nationally Determined Contribution (NDC) action plan. This integration in the energy sector should force the mining sector to reduce energy consumption or transition to alternative energy sources, whereas the government must look at low-emission pathways for the mining industry to streamline the development towards specific targets. Could you tell us more about the investment regime in the mining sector in Mongolia?

Mongolia has an estimated 6,000 deposits of some 80 different minerals, including coal, copper, gold, iron ore, tungsten, molybdenum, phosphate, uranium, and oil. Recent discoveries and development of some of the great deposits of coal, gold, uranium, copper and REE, demonstrate that FDI interest in Mongolia is attractive. By 2023, there are about 2,900 active exploration and mining licenses and more than 20 countries are major players in Mongolian mining sector, namely China, Canada, Singapore, etc. The peak period of FDI in the sector was between 2005-2013. Mongolia’s major exporting commodities are copper, gold, iron, coal and fluorspar, and the mining sector is the main driver of the economy. Mongolia is a signatory to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Our country has close to 30 double taxation and investment protection agreements with its counterparts. Mongolia’s jurisdiction is competitive at regional and international levels, and accepts, supports, and protects investment. What do you make of the government’s plans to pass a new Mineral Law?

The regulatory amendments shaped the mining industry in three stages since the Constitution in 1992 the first passed in 1994, the second in 1997, and the last (effective to this day) in 2006, along with other laws. The government is working on modernizing the laws in accordance with international standards and Constitutional amendments. Some people may have lost faith in Mongolia’s ability to garner investment, lamenting that the exploration sector is almost neglected and only a few major players are left. All countries have issues, whether these are community, political, economic, or even security related. These are challenging paths to development, and BRP has no doubt that we will overcome those and raise Mongolia’s profile as a competitive and sustainable investment destination. BRP is optimistic that Mongolia, with its immense geological potential, geographical location and legislative environment will be one of the best mining jurisdictions in the world, however beyond 2030. As Mongolia is still the one of important players in the critical minerals’ era towards energy transition, the modernization will take crucial steps for better benefits for all the Mongolians, and the investors as well. Vision 2050, Mongolia’s long-term development policy, and a new draft of Law on Investment and other related modernizations of the investment regime will also bring actions, steps and outputs for the mining sector, and its future development of sustainable mining practices. What are your priorities for 2024 and beyond?

Impact investment deployment and sustainable mining practice are two of our top priorities with a dual focus on addressing challenges and creating positive change. Bridging essential expertise and specialties, BRP is expanding our network through international collaboration to bring knowledge, skills, and investment into the country. BRP will be supporting the organization of the ‘Mongolia Mine Closure Forum’ in July 2024, inviting local and foreign parties to discuss mine closure from legal, technical, and ESG perspectives. We also will be supporting the critical minerals development by collaborating with the Mongolian Critical Minerals Association and other key stakeholders in the sector. BRP sees itself as a leading firm domestically for driving the ESG and GHG Emission understanding and compliance in the country, and as a key catalyst for collaboration between multiple stakeholders.