With the passage of the draft law on amendments to the Law on Minerals at the plenary session of the State Great Khural, the legal environment of the sector will become more transparent and stable, positively affecting long-term development and the rights and interests of local communities, the Ministry of Industry and Mineral Resources reported.

As a preliminary step, representatives of the government, private sector, and civil society organizations in the mining sector held a public discussion on the proposed amendments to the Law on Minerals, exchanging views, exploring solutions, and sharing challenges. The draft law, which is being prepared for submission to the spring session of the State Great Khural, includes a number of amendments.

Specifically, a competitive selection mechanism for granting exploration licenses will be introduced, along with regulations that impose higher costs on licenses held without conducting exploration. In incorporating regulations on critical minerals, Mongolia will approve its national list of critical minerals and define policies aligned with global trends.

In addition, plans are in place to revise the methodology for calculating mineral royalty payments (AMNAT) to increase local benefits. This includes setting AMNAT benchmarks based on prices on the Mongolian Stock Exchange, aligning incremental copper royalty rates with international standards, and determining royalties on products from beneficiation and processing plants to promote value-added production. Further measures under discussion include aligning royalties on associated elements in concentrates with international practices and allocating a greater share of AMNAT revenues to aimags and localities where mineral resources are exploited.

Regarding the draft law, Minister of Industry and Mineral Resources Damdinyam Gongor stated, “The concept of ‘processing rather than merely extracting’ has been incorporated. Under the current legal framework, increased processing is not economically advantageous. We will bring 47 idle plants nationwide back into operation, double their number, and support them through policy measures. Localities that support responsible mining production, exploration, and extraction will be provided with greater opportunities. Projects that engage in theft and then flee will be halted.”

Addressing participants in the discussion, he emphasized, “If we become divided, we will achieve no results. We must listen to one another and strive for a solution that is acceptable to all. There are instances where NGOs and citizens misunderstand and oppose certain fundamental principles. Although Mongolia has not yet achieved an economy independent of mining, change will begin from here.”

Between 2015 and 2024, Mongolia received a total of MNT 99.38 trillion in foreign investment, approximately 80 percent of which went to the mining sector. Mining accounts for more than 30 percent of the country’s GDP, USD 95 out of every USD 100 entering the economy, and over 70 percent of total industrial output. It also constitutes 95.4 percent of total export revenues, 74 percent of foreign direct investment, and 28.4 percent of consolidated budget revenues.

Since the Law on Minerals was first adopted in 1997 and comprehensively revised in 2006, it has undergone approximately 300 amendments across 16 revisions.

Published Date:2026-02-11