Mongolia’s vast territory, ranging from the Gobi Desert in the south to the mountainous Taiga, is home to nomadic pastoralists who depend on mobile herding of Bactrian camels, yak, goat, sheep and horses to provide them with food, goods, and income. The area also supports widespread mining activities and licenses and taxes generated from these are an important source of government revenue.

But the social impact of mining is significant and can result in forced displacement and loss of income, without adequate compensation. Mining operations can also affect pastoralists’ mental and physical health and their social and spiritual well-being.

Whilst large international companies are usually held to the high environmental and social impact standards expected by donors such as the World Bank’s International Finance Corporation, smaller national companies need comply only with the more basic environmental legal standards set by the Mongolian government. Companies and government departments are often unaware of how mining impacts traditional mobile communities and have little understanding about how to engage with those affected and to manage negative social impacts.

‘Mining companies may look at the land they wish to develop and consider it unused or empty,’ explains Dr Ariell Ahearn. ‘They may not be aware of pastoralists on the land, how they use it, or what it contributes to their livelihoods. They may also imagine that nomads can simply move to another area to avoid mining operations. But not all areas are suitable for herding and the presence of other groups in an area may make this impossible.’

New research by the Department of Geography and the Environment, in collaboration with Mongolian colleagues, has provided robust evidence of the social impact of mining in six rural communities in Mongolia and Kyrgyzstan. Wider engagement with a network of Mongolian human rights and civil society organisations has brought the evidence to the attention of government, mining companies, international agencies, and the public.

‘Our research enabled our partners in Mongolia to show that it is not just isolated incidents of mining activity that affect pastoralists, but that mining has a sustained impact on many groups of herders across a wide area,’ says Dr Ahearn. ‘In this way they have been able to make the case for new social standards and guidelines to inform mining operations and address negative impacts.’

The network has worked with the Mongolian Cabinet office to develop the first Social Impact Assessment guidelines (SIA), which take account of traditional mobile pastoralist forms of land use and set out routes to engagement with local herders. The guidelines were initially reviewed by the Cabinet Office, who instructed the Ministry of Environment on the 8 February 2023 to finalise the standard in the first half of the year. The goal is that social impact assessment will be undertaken by all mining companies, rather than being a voluntary exercise undertaken by only some.

The network was also instrumental in setting up a Policy Impact Working Group which is building on the research to develop new policies on compensation, resolving conflict, herder rights, and social impact obligations. A wider programme of public engagement and knowledge exchange has helped to raise awareness of the social impact of mining, and there is evidence that companies are seeking more information and making unilateral attempts to change their practice.

Ahearn adds: ‘Mitigating the social impact of mining on mobile pastoralist communities – an often-excluded group, living on state land without legal rights but with customary protections – is extremely complex. We hope that our research and engagement will help to foster trust, transparency, and cooperation between mining stakeholders in Mongolia, and contribute to efforts to protect pastoralists’ way of life, maintain social cohesion, and ensure inclusive and sustainable economic development.’

Dr Ariell Ahearn is Departmental Lecturer in Human Geography in the School of Geography and the Environment

Key partners

Bayarsaikhan Namsrai, Director of Steps without Borders, Mongolia

Munkhtseren Sharav, Head of the Government Cabinet Working Group, Mongolia

National University of Mongolia, Department of Anthropology and Archaeology

Funders: ESRC, GCRF, Oxford Policy Engagement Network

The Government of Mongolia announced 2023-2025 as the year of “Welcome to Mongolia”. In 2023, an air travel agreement will be signed with 50 countries, and the possibility of 105 destinations will be created.

As a result of the visit of L.Oyun-Erdene, the Prime Minister of Mongolia, to the Republic of Korea this year, the frequency of flights between Korea and Mongolia increased from 44 to 80 flights per week. In other words, 11 flights per day are available. Following amendments have also been made.

Frequency of flights to Japan will increase from 26 per week to 62

Frequency of flights to Thailand will increase from 10 per week to 30

Frequency of flights to Turkey will increase from 6 per week to 34

Frequency of flights to Beijing will be 42 flights per week

An air communication agreement with Qatar and Kuwait has been granted. There will be direct flights to the Middle East and West Asian countries, the turnover of export cargo will increase, and it will be of great importance for the development of tourism.

"OPEN SKY" agreement will be concluded with the United States in June of this year, and direct flights between two countries will be made.

In 2023, "OPEN SKY" agreement will be concluded with Australia.

Within the first half of this year, an air communication agreement will be concluded with GREECE, HUNGARY, and GREAT BRITAIN.

Flights to 9 more local destinations will be made.

During its regular session on March 1, 2023, the Cabinet made the following decisions:

The Government of Mongolia will exercise its ownership right in Mongolian Oil Refinery plant through the Erdenes Mongol LLC.

The Cabinet made a decision to exercise its ownership right in Mongolian Oil Refinery plant through the Erdenes Mongol LLC. Accordingly, the Executive Director of Erdenes Mongol LLC was tasked to amend the company charter. Minister of Mining and Heavy Industry J. Ganbaatar was tasked to control over the construction process of oil refinery plant and crude oil pipelines in accordance with the policy of relevant ministry.

About 210 thousand tons of coal have been traded via Mongolian Stock Exchange

In order to organize the market trade of mining products in an open, transparent and fair manner, create favorable condition where the prices are set by exchanges, attract investors into mining sector through integrated export policy, openly disseminate the information on trading, agreements and deals to the international market, and improve the competitiveness of the mining products, the “Procedures on Open E-Trade of Coal for Export” was approved by the Resolution No. 466 of the Government of Mongolia in December 14, 2022.

Within the framework of this procedures, 210 thousand tons of coal of Energy Resources LLC and Erdenes Tavantolgoi LLC have been traded through five online auctions since January 12, 2023.

Based on the feedbacks and suggestions from the e-trade participants, the Cabinet amended the “Procedures on Open E-Trade of Coal for Export”, approved by the Resolution No. 466 of the Government of Mongolia. According to the amendment, coal terminal for the coal traded through e-trade is changed to “Container Terminal or Loading and Unloading area at Gantsmod border checkpoint” and security deposit rate is decreased from 10% to five percent.

S. Byambatsogt: In 2023, the Air Communication Agreement will be signed with another ten countries.

The Cabinet approved the draft Agreement on Air Communication of the Government of Mongolia with Qatar and Kuwait and decided to grant the signing right to the Minister of Road and Transport Development S. Byambatsogt. Goals to liberalize the air transport, increase the number of foreign flights, resume the domestic flights and make the Chinggis Khaan International Airport an international hub airport are included in the Action Plan and the “New Revival Policy” of the Government of Mongolia. Furthermore, the tourism is one of the main sectors for diversifying economy and increasing the income received in foreign currencies. The Government announced 2023-2025 as the “Years to Visit Mongolia”. To that extent, the Minister of Road and Transport Development has been striving for comfortable air transport, affordable tickets and sufficient number of flights. As of today, Mongolia has signed Air Communication Agreement with 39 countries and in 2023, it is expected to sign Agreement with another ten countries.

The Minister of Road and Transport Development said, “We are going to sign ‘Open Sky’ Air Communication Agreement with the USA and Australia in 2023. Other agreements with Greece, Hungary, and the United Kingdom will be finalized in the first half of this year. The establishment of the Air Communication Agreements will allow Mongolia to conduct flights to airline hubs without any restrictions.”

2 new COVID-19 cases were recorded in Mongolia in past 24 hours.

1 of them is contact in Ulaanbaatar, and another one was registered in the regions. No imported cases were found.

2 patients with COVID-19 were sent to hospitals in Ulaanbaatar and another province.

The text of the following statement was released by the Governments of the United States of America and Mongolia on the occasion of the 4th U.S.-Mongolia Economic Policy Dialogue.

To strengthen further the U.S.-Mongolia Strategic Partnership and economic relationship, representatives of Mongolia and the United States held the 4th bilateral Economic Policy Dialogue on February 2, 2023, in Washington, D.C. During the meeting, the two nations discussed joint responses to economic challenges, explored opportunities to deepen bilateral trade and investment, and decided to pursue cooperation in key areas, including critical minerals, clean energy, and the digital economy.

U.S. Principal Deputy Assistant Secretary of State for Economic and Business Affairs Whitney Baird and State Secretary of the Ministry of Foreign Affairs of Mongolia Ankhbayar Nyamdorj co-chaired the dialogue. U.S. participants included representatives from the Department of State, National Security Council, U.S. Agency for International Development (USAID), Millennium Challenge Corporation, Office of the U.S. Trade Representative, Department of Commerce, Department of Agriculture, Department of the Treasury, U.S. International Development Finance Corporation, Export-Import Bank, Transportation Security Administration, and Federal Aviation Administration. Mongolian participants included representatives from the Ministry of Foreign Affairs, Ministry of Food, Agriculture and Light Industry, Ministry of Economy and Development, Ministry of Energy, and Ministry of Mining and Heavy Industry.

The United States and Mongolia reiterated that countries around the world should partner to hasten global economic recovery, including by working to overcome supply chain disruptions, and affirmed the international community should unite in efforts to achieve the UN Sustainable Development Goals.

The two nations reaffirmed their strong desire to build on the overall U.S.-Mongolia Strategic Partnership, deepen the economic relationship in areas of mutual interest, and pursue opportunities for cooperation through existing and new mechanisms, including capacity building and trade promotion. They further reiterated the importance of strengthening Mongolia’s business climate, including through full implementation of the United States-Mongolia Agreement on Transparency in Matters Related to International Trade and Investment. Both sides noted with satisfaction the signing of a Memorandum of Consultations (MOC) marking the successful negotiation of an Air Transport Agreement between the Government of the United States and the Government of Mongolia on January 24, 2023, an important step toward establishing scheduled, nonstop passenger flights between Mongolia and the United States, thus further expanding economic and people-to-people ties.

The two nations discussed potential collaboration on projects to advance Mongolia’s economic development, diversification, and independence, with a focus on renewable energy and energy security, critical minerals, transportation, food security, intellectual property rights, and the digital economy. The two sides also reviewed joint development programs, including the up to $462 million Millennium Challenge Corporation Water Compact, which entered into force in March 2021 and will expand Ulaanbaatar’s water supply by more than 80 percent. They noted the USAID Mongolia Energy Governance program, which will promote the development of a modern energy sector and facilitate sustainable and inclusive economic growth.

Mongolia commended the financial assistance from the United States to improve herders’ preparedness to overcome severe winter climate conditions.

The two nations highlighted the bilateral relationship is grounded in shared democratic values. They discussed expanded efforts to strengthen the rule of law and governance, fight corruption, and uphold fundamental freedoms, including the freedom of expression online, noting that a strong democracy and a strong economy go hand in hand.

The United States provided information on its initiatives in the Indo-Pacific in support of a free and open region that is connected, prosperous, secure, and resilient, through potential partnerships in areas including infrastructure, critical minerals, environmental protection, and technology. The two sides intend to further explore possibilities to implement joint projects and work with like-minded partners in and out of the region.

The United States and Mongolia reviewed their 2018 Roadmap for an Expanded Economic Partnership and expressed mutual intent to update it to reflect the broadening scope of bilateral cooperation by including new areas and opportunities for partnership.

The United States and Mongolia decided to maintain the exchange of high-level visits, including holding the next Annual Bilateral Consultations and strategic dialogue in 2023 in Washington, D.C.

Australian rare earths producer Northern Minerals (ASX: NTU) said on Tuesday that the federal government had prevented its largest shareholder, China’s Yuxiao Fund, from raising its stake in the company on grounds of national interest.

Yuxiao Fund needed the Foreign Investment Review Board’s (FIRB) approval to increase its holding in Northern Minerals to 19.9% from 9.92%.

Beijing has condemned Australia for previously blocking Chinese investment on national security grounds, saying those moves have contributed to a years-long diplomatic freeze.

A report by consultant at KPMG and The University of Sydney released last year, showed that Chinese investment in Australia has been steadily decreasing, falling almost 70% in 2021 to the lowest level since 2007.

The Labor government, in power since May last year, has moved to repair diplomatic relations with China after clashes in recent years over trade, influence in the South Pacific, and the origins of the covid-19 pandemic.

Chinese companies, including state-owned steelmaker Sinosteel, say they have yet to see the results of efforts to mend ties placed by the new administration.

Chinese companies invested a total of $110.1 billion in Australia between 2007 and 2021. (Courtesy of KPMG/ University of Sydney.)

According to Sinosteel Australia managing director, David Sun, the FIRB, which has the power to block foreign investment, has been disproportionately rejecting Chinese investors.

“When FIRB rejects one case, they scare many cases,” Sun said in a November presentation at a conference in Sydney.

Northern Minerals has been focused on fine-tuning its heavy rare earths processing system through a pilot plant, which could make the Western Australia-based miner one world’s first significant heavy rare earth producer outside of China.

Northern Minerals says China’s mining and processing techniques only generate grades of 20 to 40 ppm of dysprosium.

The company’s board recently approved a strategic partnership with Iluka Resources Limited to provide it access to feedstock rich in heavy rare earths materials dysprosium and terbium.

The company’s flagship project, Browns Range, is slated to become Australia’s only heavy rare earth mine and the first relevant dysprosium producer outside of China.

The operation, which is expected to have a productive life of 11 years, can yield ore with heavy rare earths grade of between 600 and 800 parts per million dysprosium.

Browns Range consists of seven deposits, with a total mineral resource of 10.8 million tonnes.

(With files from Reuters and Bloomberg)

The Government of Mongolia and the Ministry of Road and Transport have been paying attention to expanding the capacity and operation of the transport and logistics sector. Last year, AH 4a – a road corridor connecting Xinjiang of the PRC to the Russian Federation via the Yarant /Ulaanbaishint/ Tsagaanuur road was opened for transportation. In addition, the national railway network has been expanding and the projects for Artssuuri-Shiveekhuren western railway and Ereentsav-Bichigt eastern railway have been started.

Mongolia has joined the Asian Highway Network, Trans-Asian Railway Network, and Intergovernmental Agreement on Dry Ports, initiated by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and has been actively working toward common commitments. Minister of Road and Transport Development S. Byambatsogt met with the Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) Armida Salsiah Alisjahbana and agreed to cooperate on projects and programs to build dry ports.

While noting the necessity to create a dry port in Mongolia to increase the carrying capacity of freight transportation, ensure fast clearance, and increase the volume of transit freights, the Minister of Road and Transport Development S. Byambatsogt said, “We are planning to build dry ports in International airport in Khushig Valley, Altanbulag port and Zamiin-uud port at first, and then, in Khovd and Dornod aimags.” To that extent, Minister S. Byambatsogt expressed his intention to cooperate with UN ESCAP on developing a feasibility study for the dry port to be built in Mongolia, determining its scope of operation, and settling the investment and infrastructure issues. Moreover, the Minister asked Ms. Armida Salsiah Alisjahbana for support in linking the Khovd-Altai-Bayankhongor-Arvaikheer-Mandalgovi-Choir route to the Intergovernmental Agreement on the Asian Highway Network of ESCAP and making it an official route of this network.

Expressing her appreciation for the fact that Mongolia is paying special attention and putting concerted efforts into developing the transport and logistics sector and implementing strategically important projects, the Under-Secretary-General of the UN ESCAP Armida Salsiah Alisjahbana said that she would pledge all-round support for Mongolian dry port and railway construction projects.

Australia’s Elixir Energy’s pilot project in its Nomgon IX CBM project in Mongolia has now been operational for over 100 days and the production from the Nomgon-8 and 9 wells reached 200,000 ft3/day for the first time, it said on March 1.

The company’s drilling programme for 2023 is due to start next month. “Our Nomgon pilot project continues to deliver the goods with an excellent flow rate from what are simple and shallow vertical wells. The pilot will continue in the weeks to come and we will provide further updates as it moves towards its conclusion,” Elixir managing director Neil Young said.

Elixir is also planning a green hydrogen pilot project in Mongolia. The company in January last year signed a memorandum of understanding with Mongolia Green Finance Corp to support project finance for the first phase of its Gobi H2 project.