Overview of Extractive Industries

Mongolia's mining sector is a major contributor to the national economy. Major exports include copper, gold, molybdemum, coal, and fluorspar concentrates. The World Bank’s Mongolia Quarterly Report recently highlighted the challenges in the mining sector in Mongolia, noting that mining revenues are contributing to an increasing share of the national budget, and highlighting Mongolia’s vulnerability to fluctuations in world mineral prices. The implementation of the EITI is playing a key role in strengthening resource revenue management and transparency.

Status of EITI Implementation

The government of Mongolia committed to implement EITI in December 2005.

Mongolia issued its first EITI report in February, 2008, covering company payments and government receipts in 2006. The first EITI report identified a number of issues requiring further investigation, and identified priorities for strengthening reporting for the 2007 cycle. Mongolia issued its second EITI report in November 2009, covering company payments and governments receipts in 2007. The 3rd report covering data from 2008 was published in June 2010. The reports are available on the Mongolia EITI website.

Mongolia completed the validation process in February 2010. The validation report is available here. On 15 April 2010 the Board designated Mongolia as Candidate country that is ‘close to compliant’. As set out in EITI Policy Note #3, the designation of 'close to compliant' applies in cases where the EITI Board considers that a Candidate country has not only made meaningful process, but can reasonably be expected to achieve Compliance within a very short time. Based on the Validator’s findings, the Board recommended a number of remedial actions. When the Mongolia Multi Stakeholder Working Group considers that the outstanding issues have been addressed, the EITI International Secretariat will reassess Mongolia’s compliance. The Board retains the right to require a new validation if the remedial steps and secretariat review are not completed within 6 months (i.e. by 15 October 2010). For more information, refer to the minutes from the Berlin Board Meeting.

Governance of EITI Implementation

A National Council coordinating and monitoring the Mongolia EITI, chaired by the Prime Minister, has been established, together with a Multi Stakeholder Working Group. Details on the composition of these groups is available on the Mongolia EITI website.

EITI Focal Point

Sh. Tsolmon
Coordinator
Secretariat of Mongolia Extractive Industries Transparency Initiative
E-Mail: eiti [dot] secretariat [dot] mn [at] gmail [dot] com

Companies operating*

Oil & gas companies: CNPC (China)

Mining companies: Rio Tinto*, Vale*, Ivanhoe Mines, Boroo Gold, Shitzhir Alt, AltanDornot Mongol, Tavantolgoi,  Erdenet Mining Corporation, Cameco Mining.
* EITI Supporting Company

* Note: Company list based on EITI research and is not conclusive

For further information, please contact Samuel Bartlett at the EITI International Secretariat.