Summary

The Business Council of Mongolia (BCM), in collaboration with the Australian Chamber of Commerce in Mongolia (AustCham) and the Systems Engineering Institute, hosted the event "Advancing Economic Freedom in Mongolia’s Mining Sector" on 16 January 2025. Key stakeholders from government, business, and academia convened to discuss critical issues affecting Mongolia’s mining sector, foreign investment, and economic freedom.

Opening Remarks

Ts. Tumentsogt, Chair of the BCM, highlighted the importance of addressing foreign investment challenges and removing barriers to conducting business in Mongolia’s mining sector. He welcomed distinguished panelists Sandra Choufani, Ambassador of Canada to Mongolia and Mr. L. Choi Ish, Advisor to the Minister of Industry and Mineral Resources. Two studies on economic freedom will be presented, and we aim to discuss key issues and potential solutions he stated. He also lauded Parliament’s recent approval of a uranium project agreement with the French mining company Orano as a step forward for the sector.

D. Jargalsaikhan, Chair of the Systems Engineering Institute and BCM Board Member, emphasized the critical role of systems analysis in addressing legal and social conflicts within the mining sector. He urged support for the Young Researcher’s Foundation and shared insights from analyses conducted on mining relations and Mongolia’s constitutional framework. “Our studies aim to identify systemic gaps and conflicts within the legal framework to create a more cohesive and practical approach for all stakeholders,” Jargalsaikhan said.

Key Presentations

Ch. Oyu-Erdene, CEO of the Systems Engineering Institute, presented an “Analysis of Legal Acts Regulating Relations in the Mining Sector and Addressing Pressing Issues.” The study identified significant conflicts and gaps within Mongolia’s mining regulations, including:

• 20 provisions across six laws conflicting with the constitution.
• Around 25,000 systemic gaps within 112 mining-related rules.

“Resolving these conflicts requires consensus among stakeholders,” Oyu-Erdene stated, drawing a metaphor to treating a “sick” system that requires collective acknowledgment of issues before addressing them.

A presentation by B. Munkhdul, Advisor to the Deputy Prime Minister of Mongolia, on the “Draft Foreign Investment Law” was scheduled, but he could not attend as planned.

Panel Discussion: Enhancing Mongolia’s Investment Landscape

Moderated by Ts. Tumentsogt, the panel featured:

• L. Choi Ish, Advisor to the Minister of Industry and Mineral Resources
• Sandra Choufani, Ambassador of Canada to Mongolia
• D. Jargalsaikhan, Chair of the Systems Engineering Institute
• Brad Clarke, Managing Director of Sandvik Mongolia

Highlights from the Panel:

• L. Choi Ish discussed the government’s commitment to infrastructure development, investment in processing post-extraction, and addressing legal conflicts holistically. “We must establish fundamental rules of the game to ensure stable operations and attract investment,” he said.
• Sandra Choufani highlighted Canada’s focus on sustainable mining and the potential for future collaboration with Mongolia. To attract global investors, Mongolia needs a clear, long-term strategy and stable legislation. Promoting success stories like the Orano agreement can help build international confidence, she stated.
• D. Jargalsaikhan called for greater alignment of Mongolia’s mining laws with the constitution and long-term stability. He stressed the importance of clarifying the definition of “societal benefit” in natural resource use, as mandated by recent constitutional amendments.
• Brad Clarke emphasized the importance of responsible mining practices and collaboration between the public and private sectors. He urged for less prescriptive and more flexible regulatory frameworks to enhance investment opportunities.

Additional Insights

• B. Bayartsengel, CEO of TUS Solution LLC, presented on “Digitizing Compliance in Mining,” showcasing AI-driven tools to streamline adherence to over 1,700 legal responsibilities faced by mining companies in Mongolia.
• Discussions underscored the need for transparency, predictability, and legislative stability to attract foreign investment and strengthen Mongolia’s position as a global mining competitor.
• The event concluded with networking opportunities, fostering connections among participants to further collaborative efforts in advancing Mongolia’s mining sector.
  
  Links:

1. Editor's notes