BCM June 2022 Monthly Meeting Recap

MONTHLY MEETING RECAP 01 July 2022 Hits: 1484

BCM JUNE 2022 MONTHLY MEETING RECAP

The Business Council of Mongolia (BCM) held a regular Monthly Meeting on 30 June 2022 at the Shangri-La Ulaanbaatar with the aim of reviewing the 2022 Convention of the Prospectors and Developers Association of Canada held earlier in the month and discussing its impact on Mongolia’s extractives and mining sector.

BCM representatives, including Managing Director B.Javkhlan and member companies, were among the Mongolian delegation that travelled to Toronto for PDAC 2022 held on June 13-15.

Minister of Mining and Heavy Industry G.Yondon in his opening remarks noted that around 150 people from Mongolia flew to Toronto to represent Mongolia's mining and extractives sector. This year's PDAC was the first in-person conference since the start of the pandemic. Leaders emphasized the green transition, sustainable development, and the supply of critical minerals. The Minister relayed that some nations expressed interest in cooperating with Mongolia on critical minerals. Copper, nickel, lithium, and cobalt will all be in great demand for the foreseeable future. Seeing from the successes of Oyu Tolgoi, Canada's export support organization also said they would be willing to invest in Mongolia in this regard. At PDAC, the Mongolian delegation conveyed to the international community that the country is striving to improve the legal environment, governance, and policies related to mining.

Glenn Zyzanski, Head of Development Cooperation at the Embassy of Canada in Mongolia, noted that "energy and enthusiasm permeated the conference" on its 90th anniversary. Canada is committed to a strategy to advance the critical minerals supply chain, which includes six aspects: innovation research and exploration; accelerating project development; sustainable infrastructure; indigenous reconciliation; diverse workforce and communities; and global leadership and security. "Canada is proud to be a leading partner in Mongolia’s mining sector," stated Zyzanski.

After the opening statements, the first of two panel discussions was held. Moderated by BCM Chair Ts.Tumentsogt, on the first panel were:

H.E. Mr. Gelen YONDON, Minister of Mining and Heavy Industry
Dr. Gotov BATTSENGEL, CEO of Mongolian Mining Corporation
Mr. Battulga GANKHUYAG, CEO of Erdenes Tavan Tolgoi JSC and Chairman at Coal and Energy Group
Mr. Erdene LKHAGVA, GM External Affairs and Communications, Copper, Oyu Tolgoi LLC

The panelists reviewed Mongolia's participation at PDAC 2022 as well as shared some of the big projects they are working on. There was also a heavy emphasis on the increasing need for exploration in Mongolia, which the Mining Ministry supports. With critical minerals and rare earth elements taking center stage in the mining world, Minister Yondon noted: "Where in Mongolia could these commodities be? Where should we explore?"

Before the second panel, BCM Board member and Chairman of Gund Investment LLC Mr. Dugar Jargalsaikhan delivered a presentation on “Developing a model for the extractive industry of Mongolia.” Jargalsaikhan is also a member of the BCM's Competitiveness Working Group. He has recently been working on a project to create a development model for Mongolian mining, stating we need a common understanding to eliminate discrepancies in policies and attitudes. The model must: be aligned with the constitution; be aligned with systems theory; be aligned with international standards; and be prepared for the digital transition. He expressed the problem with current attitudes through a poignant metaphor: when CEOs talk about raising funding, implementing a project, etc., it is like constructing a building without any consideration of its surroundings. That is why we need a better model to harmonize the various efforts of different people and organizations.

The second panel discussion focused on "Shaping Mongolia's Future Mining Industry." Moderated by columnist at the Daily newspaper Ms. Tsetsegmaa Baasansuren, on the panel were:

Mr. Gongor DAMDINNYAM, Member of Parliament
Mr. Ankhbayar BILGUUN, Vice President, Business Development, Erdene Resource Development Corp.
Mr. Myagmarsuren DAGVA, Advisor to the Ministry of Mining and Heavy Industry
Dr. Andrew STEWART, Vice President of Exploration, Xanadu Mines
Dr. Bold UYANGA, Director General of the Geological Policy Department, Ministry of Mining and Heavy Industry

Once again, exploration and investment were key themes of the discussion. Dr. Uyanga mentioned that since 1997, only 1 out of 630 exploration licenses on average advance onto the exploitation stage. Mongolia's exploration and mining sector has the potential to compete globally; however, we have to align the domestic sector with what's happening around the world, noted Dagva. Legislators also want to lower state involvement and safeguard private investment. On the other hand, all stakeholders must be reasonably satisfied, not just the investors, stated Damdinnyam MP. Andrew Steward told the audience that investors will come if they can get on the ground, and that means licenses. "Exploration may be a business, but geology is a science," he said.

Photos from the meeting can be found from the BCM's Facebook page.

More information can be found from the Editor's notes and presentations linked below.

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