Could you introduce Erdenes Mongol?

Erdenes Mongol LLC was established in 2007 as Mongolia’s principal stateowned enterprise responsible for representing the government’s ownership in matters involving strategically significant mineral deposits. Our company serves as the holding company for 30 different legal entities, which are grouped into Copper & Metals, Fuel & Energy, and Infrastructure & Logistics groups. Our group is the largest player in the mining industry, engaged in exploration, mining, beneficiation, and refining of gold, silver, copper, coal, and other minerals, and together we account for a substantial share of Mongolia’s resource sector, holding 14% of the nation’s recognized coal reserves, 65% of copper reserves, 15% of fluorspar reserves, 55% of iron reserves, and contributing around 30% of the country’s total export earnings. How has Erdenes Mongol performed in 2023 and what is your outlook for 2024?

In 2023, Erdenes Mongol LLC successfully implemented significant structural changes aimed at fortifying the governance structure of its subsidiaries and affiliates; these measures have already resulted in notable improvements in their economic efficiency. Consequently, major subsidiary companies of our group achieved historical results in terms of product processing volume and sales revenue in 2023.

For instance, Erdenet Mining Corporation SOE anticipates a notable 10% increase in processed ore volume and a 6.8% growth in sales for the year 2023 compared to the previous year.

In addition, we are striving to attract foreign investors and fostering mutually beneficial collaboration for upcoming projects and programs at the group level within the framework of our new strategic plan.

Looking ahead to 2024, Erdenes Mongol Group intends to develop industrial parks to create an industrial production chain by providing private sector companies that are engaged in activities of producing final goods from mineral resources to ensure the implementation of the government’s New Revival Policy. Much of Mongolia’s territory remains under-explored. What is the exploration strategy undertaken by Erdenes Mongol?

Currently, our company holds 67 mining licenses and 17 exploration licenses. We also have a number of licenses for which the response is still pending. Erdenes Mongol Group does not have the resources to investigate all mineral reserve fields. As a result, we have begun the process of identifying essential minerals and we are pursuing a program of expanding investment and boosting exploration and research in the sector of critical minerals. With regards to exploration activities, we are focusing on increasing the reserves of existing exploration and exploitation fields through commissioning additional detailed exploratory studies in accordance with internationally accepted standards such as JORC standard. Foreign investors are always open to investing in and collaborating on these exploration and exploitation projects. What should our international readers know about Mongolia?

Mongolia has abundant mineral resources, ranking among the top 10 in the world, and is home to over 80 different types of minerals. We aim to reduce the export of unprocessed raw minerals and further develop the mineral-processing industry. I would like readers and foreign investors to know that our country has numerous advantages in terms of abundant mineral resources with a geographical location close to major export markets, a skilled workforce, and a state policy to safeguard and assist potential investors. Numerous international investors have shown interest in Mongolia, however, we recognize that there are certain hurdles such as an unstable legal environment and inconsistent policies with regards to supporting investors. As a result, the Mongolian government is focusing heavily on making reforms to the investment law and enhancing its business climate. What are some upcoming developments?

In our medium-term strategic plan, Erdenes Mongol Group intends to establish industrial plants to produce basic raw materials such as cathode copper, steel billets, lime, and coke, which are essential for the manufacturing of final products based on the resources of the group’s large mining entities. Hence, the group will be able to generate opportunities for the private sector to create value by investing in the establishment of industrial parks and the provision of primary raw materials and infrastructure to their processing plants engaged in production of end-products. In this way, instead of conducting a single project, it will be feasible to construct a cluster in which the public and private sectors collaborate to completely utilize natural resources and generate final goods. Furthermore, Mongolia’s mineral processing industry will be brought to the next level, and by increasing the value of our minerals, we will be able to give full benefits to our investors.