Bayarmandal. L Chairman
MINERAL RESOURCES AND PETROLEUM AUTHORITY OF MONGOLIA (MRPAM)
"We are open for our foreign and domestic investors to cooperate within the framework of the law in the direction of discovering Mongolia's vast mineral resources."
Could you introduce the functions of MRPAM?
MRPAM is an implementing agency of Mongolian Government established 27 years ago. Our main objective is to support in framing development policies of geological, mining, and the oil sector and provide quick and fair services to investors and customers.
Also, we are responsible for implementing laws and regulations related to licenses. We are in the process of renewing the system to transit from the Russian system to the Western system, and to digitalize it. Could you share the recent changes and achievements of MRPAM?
In the “Vision 2050” policy document, it is stated that “Citizen-centered public services will be created based on electronic technology.” In this context, the MRPAM is now in the process of transmitting e-governance in order to increase the mineral resources sector’s efficiency, benefit, and productivity, and to make the services open, unbureaucratic, transparent, and accountable.
We have been receiving complaints related to the selection of exploration licenses quite often. The process of receiving exploration and mining reports and plans was notoriously bureaucratic. This issue has resolved, and in accordance with Recommendation No. 03 of the National Security Council of Mongolia, dated November 25, 2022, the mineral special licenses issuing process through a selection process has been developed into the electronic system www.tender.gov.mn in cooperation with the State Procurement Department.
The entire selection process has been digitalized, and the licensing area became publicly announced from November 23, 2022. Being able to monitor the decision-making process of government institutions is a big advantage of providing information transparency. Furthermore, foreign investors do not necessarily need to come to Mongolia. They can access the information, participate and apply in the selection process online by paying the fee.
Thus, we are working to intensify the rare earth elements exploration and geological research, and increase mineral resources that will ensure economic growth in the medium and long term. What are the main changes of the Minerals law? Which direction did you pay more attention to?
The Minerals Law is a big law. In order to strengthen transparent, open and responsible governance, the Ministry of Mining and Heavy Industry has developed policies for the sector in five main areas: Exploration, extraction, processing, sales and distribution. In this frame, we are working to submit the preliminary draft laws to the Parliament.
As there is a real need to change the law with the times, we prepared a draft of the revised Minerals law. Even though the current law is clear about exploration and exploitation, it is not clear about processing and mine closure. The revision included an open system at every stage from the prospecting to closure. In other words, we aimed to include comprehensively processing, mine closure, guarantee funds, labor safety, and local coordination in this revised draft. How do you describe the development of the mineral and geology exploration sector in the ‘Vision 2050’ long-term policy document? What is MRPAM doing concerning its implementation?
In line with ‘Vision 2050’, the ‘New Revival Policy’ approved by the Government of Mongolia includes three goals and 11 measures to restore industrialization, and 13 projects and programs are being implemented in this context. For example, mineral license digitalization, intensification of geological exploration in prospected areas of state protection and located near in border areas, Tavantolgoi coal concentration plant, construction of an industrial technology park based on Erdenet State owned company, production of cathode copper from oxidized ore, copper concentrate processing based on the Oyu Tolgoi deposit, and a ferrous metallurgical complex plant and oil refinery are all being implementing. Do you have a final message?
Mongolia is a developing country. About 30 years have passed since the transition to a market economy. We have a lot of things that were improved and a lot of things we need to fix. We are cooperating with the private sector and the public to develop responsible and green mining in line with global development. Since 2023, MRPAM has started branching out to more provinces so that we can coordinate more locally-driven activities and nurture mutual understanding. Our aim is to establish a branch in every province. We would also like to express that we are open for our foreign and domestic investors to cooperate within the framework of the law in the direction of discovering Mongolia’s vast mineral resources.