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Championing transparency: Mongolia’s journey towards mining transparency

Batpurev Ayushsuren on the importance of transparency and good governance in Mongolia’s mining sector

Batpurev's journey began with a profound question: why do some countries prosper, while others remain poor?  

This curiosity fuelled a lifelong dedication to tackling economic inequality, particularly in his home country of Mongolia. As a seasoned economist and civil society activist, Batpurev has focused his career on improving governance in Mongolia’s resource sector, particularly by raising awareness of who truly owns and controls the corporations that are extracting the country’s mineral wealth. Despite Mongolia’s rich resources, the country continues to face poverty and underdevelopment. 

Batpurev presenting on a beneficial ownership structure at a capacity building workshop in Mongolia
Batpurev presenting about a beneficial ownership structure at a capacity building workshop in Mongolia.

Since Mongolia joined Opening Extractives – a joint programme by the EITI and Open Ownership to improve access to reliable information on  company ownership in the extractive sector – Batpurev has been at the forefront of promoting transparency. Since May 2022, the programme has provided technical support to enhance beneficial ownership disclosure, strengthening governance and aligning with the country’s anti-corruption efforts.

Shaping priorities through experience 

Driven by his passion for open and accountable governance, Batpurev has become a leading advocate for greater transparency in Mongolia’s mining and oil sectors. "Beneficial ownership work requires close collaboration with diverse stakeholders, including civil society, government and industry,” he notes.

Beneficial ownership work requires close collaboration with diverse stakeholders, including civil society, government and industry.

With support from the EITI and civil society groups, Mongolia EITI has made significant strides to foster greater transparency in the sector. Guided by the EITI Standard, Batpurev and his team have played a central role in shedding light on payments made by companies and revenues received by various levels of government. Their consolidated reports showed that mining contributes 30% of Mongolia’s state budget and these findings empowered citizens to demand greater accountability on proceeds from the extractive sector in Mongolia.

However, Batpurev quickly realised that transparency in mining licensing and revenues was not enough. “The business processes and relationships in Mongolia’s resource sectors are complex,” he says. “More needs to be done to ensure true accountability. Transparency of the ultimate owners behind extractive companies is crucial in the fight against corruption as it enables effective taxation and combats corruption.”  

Transparency of the ultimate owners behind extractive companies is crucial in the fight against corruption.

Batpurev takes pride in the progress made in beneficial ownership transparency. By joining the Opening Extractives programme in 2022, the Mongolian government committed to addressing corruption and improving the business climate, with a focus on establishing a legal and regulatory framework for collecting and disclosing beneficial ownership data. Public awareness of beneficial ownership transparency has risen significantly in recent years  thanks to the advocacy of Batpurev, civil society and international organisations like the EITI, Open Ownership and Financial Action Task Force (FATF). 

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Batpurev presenting on how civil society organisations can use beneficial ownership information to hold government accountable.

Milestones in transparency 

A major milestone was the adoption of the Public Information Disclosure Act in May 2022, which requires all companies report their beneficial owners to the State Agency of Registration. This law, combined with harmonised definitions across legal frameworks, provides a strong foundation for corporate accountability. In 2023, the government passed the Law on Mineral Commodity Trade on the Mongolian Stock Exchange (MSX), aimed at ensuring transparency in mineral trades and contracts and preventing corruption.  

One of the most significant achievements is the launch of Mongolia’s first comprehensive beneficial ownership information portal. Developed with World Bank support, the portal allows users to access and cross-check beneficial ownership data. Batpurev was instrumental in its development through the Opening Extractives programme, making it a valuable resource for analysts, civil society and policymakers.  

Despite these advancements, challenges remain. Legal and regulatory gaps, resource constraints, privacy concerns and non-reporting issues continue to slow down the full implementation of the EITI Standard. Batpurev stresses the importance of ongoing collaboration with organisations such as the EITI, FATF, and the Open Government Partnership (OGP). He also advocates for the use of technological solutions, such as the beneficial ownership portal, to simplify compliance.  

“Investment in capacity building, particularly through initiatives like Opening Extractives, has been crucial,” Batpurev adds. “It ensures that regulatory agencies and other relevant bodies have the skills needed to enforce transparency measures.” Ultimately, Batpurev believes that better governance in resource management will lead to sustainable development and a more just society.

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Batpurev presenting on Mongolia’s beneficial ownership transparency progress at EITI’s Global Conference Innovation Talks in June 2023.

A vision for the future 

Looking ahead, Batpurev emphasises the need to integrate beneficial ownership transparency into Mineral Resources and Petroleum Authority of Mongolia (MRPAM)’s licensing systems, and improve data sharing with the General Authority for State Registration (GASR) to increase compliance, currently at 50%. He underscores the importance of supporting the Mongolia Anti-Corruption Agency in establishing best practices for politically exposed persons  to declare their beneficial ownership.  

Civil society, government, industry and international partners must work together to overcome the remaining challenges and realise a more transparent and just future for Mongolia

Batpurev’s ambitious vision for the next 3-5 years includes ensuring every license holder in Mongolia’s extractive sector publicly discloses their beneficial owners, with data that is regularly updated and easily accessible. But achieving these goals will require collaboration from all stakeholders. Batpurev’s message is clear: no single entity can do it alone. Civil society, government, industry and international partners must work together to overcome the remaining challenges and realise a more transparent and just future for Mongolia. 

 

    Author(s)
    Nyasha Vera
    Countries
    Mongolia