19 political parties and two coalitions participated in the ninth parliamentary elections, each presenting their platform. While party agendas did not heavily influence voter choices and election outcomes, the future trajectory of Mongolia’s mineral resources sector hinges significantly on the positions and policies adopted by the parties now seated in Parliament. Therefore, the Mongolian People’s Party (MPP), the Democratic Party (DP), the Labour Party (HUN), the National Coalition, and the Civil Will-Green Party, all of which hold seats in Parliament, have outlined and compared their key concepts and policies regarding mining in their respective agendas.
Geological Exploration and Investment: Strengthening and Expanding
The call to intensify and expand geological exploration appears in the agendas of the MPP, DP, and HUN, albeit with slight differences in purpose and rationale.
According to the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) statistics, investment in Mongolia’s exploration sector has been declining, contrasting with global trends driven by efforts to reduce greenhouse gas emissions. This global shift has spurred other nations to support and promote mineral exploration actively, yet Mongolia has experienced stagnation in this sector for the past 14 years.
Simply expanding without activating exploration will not suffice. The investment follows the issuance of exploration licenses, enabling geological surveys, and the opening of deposits. However, what measures do the parties propose to restore confidence, activity, and interest among foreign and domestic investors crucial to this exploratory phase? Clearer policies or plans outlining new resources and opportunities are needed to enhance the investment environment and attract fresh investments in geology and mining.
The National Coalition and the Civil Will-Green Party (CWGP) have yet to prioritize mineral discovery and exploration in their agendas.
Regarding geological exploration, the MPP and HUN have addressed licensing issues. HUN pledges to implement policies to curb the illegal sale of special licenses, while the MPP reiterates its commitment from the 2020 election platform to “make mining licenses transparent and revoke licenses issued in violation of the law.” It is noteworthy, however, that this exact statement appears to have been directly copied from their 2020 platform, raising questions about the need for updated provisions.
The parties’ platforms appear to incorporate various proposals scattered throughout. The DP has included the most extensive coverage of mining-related issues, leaving only some topics untouched.
Detailed discussions on small-scale mining, construction materials, geological research capacity building, and method revisions are evident, but there needs to be more mention regarding the liberalization of exploration licensing.
This omission stems from earlier this year when Mongolian miners, for the first time, approached political parties urging specific proposals in their parliamentary election platforms to support sustainable development through government policy. Among these proposals, a central theme was the urgent need to significantly ramp up mineral exploration in line with the global economy’s green transition, aiming to activate research, exploration, and exploitation of crucial minerals.
However, the parties overlooked these ideas, none of whom articulated a specific agenda on this crucial matter. Despite S. Bayartsogt, the First Vice-Chairman of DP, pledging earlier to adopt an open and libera exploration policy, no fundamental reform policy aimed at broadening exploration efforts was included in their agenda.
In summary, aside from the general call to intensify the geological exploration sector, which hinges on foreign and domestic investments, and to revoke illegal licenses, the agendas do not include innovative ideas.
Looking at the broader investment landscape, the MPP plans to introduce new economic projects through mineral resource exports, focusing on increasing foreign investment, specifically in rare earth elements. The DP proposes investing in domestic and international mining projects, augmenting the wealth fund through global capital markets, and establishing a supportive policy framework. Meanwhile, HUN aims to ensure investment stability while proposing mega-projects funded by a mining revenue-based investment fund.
However, none of these agendas offers prospective investors any distinct advantages or stabillty assurances that could instill confidence.