Mongolian mining business and authorities leaders might be a part of a strong worldwide presence at this yr’s IMARC occasion in Sydney, Australia. Dr Battsengel Gotov, Mongolian Nationwide Mining Affiliation chair, speaks right here with Beacon editor Richard Roberts in what’s a pivotal yr for the nation’s economic system and mining sector.
Dr Gotov (pictured proper), CEO of Mongolian Mining Company since Might 2010, obtained a grasp’s diploma in science and a PhD in natural chemistry from Comenius College in Slovakia. He began working as an assistant professor on the college earlier than coming into the brewing business after which shifting into mining.
Richard Roberts: You might have been concerned in Mongolia’s mining business for about 20 years. What makes you extra optimistic than pessimistic at the moment concerning the future prospects for the business?
Battsengel Gotov: Mongolia’s mining business has at all times been the spine of our nation’s economic system, and over the previous twenty years we witnessed its development and transformation in outstanding methods. I’m very assured that the mining business will proceed to play an important position in Mongolia’s economic system within the foreseeable future. The worldwide demand for crucial minerals is growing sharply in reference to the inexperienced transition, which opens to Mongolia a novel alternative to emerge and set up itself as a key participant within the international provide chain. Worldwide cooperation and commerce might be boosted if Mongolia will have the ability to unlock its potential by growing copper, uncommon earth components, uranium and different mineral deposits.
Furthermore, Mongolia’s authorities is placing a stronger emphasis on geological survey work required to raised perceive the potential mineral sources prospects within the nation. This shall function a base for future discoveries and investments within the sector.
One other key cause for my optimism is the gradual however constant decision of infrastructure challenges. Over the past decade the nation has managed to advance step-by-step a number of infrastructure initiatives. I consider that such progress will permit simpler entry for export merchandise from Mongolia to China and different worldwide markets as properly. This logistical benefit is essential for sustaining our competitiveness on the worldwide stage.
Lastly, the business is shifting in direction of extra accountable and sustainable mining practices, which isn’t solely decreasing environmental impacts but additionally strengthening relationships with native communities. This shift can also be an vital issue to draw rising curiosity from worldwide buyers, who turned extraordinarily delicate to ESG metrics as one among key funding standards as properly.
Positive, there’ll at all times be challenges, however resilience and adaptableness, mixed with concentrate on crucial minerals, infrastructure growth, and accountable enterprise practices, might be instrumental drivers for the way forward for the mining business.
Richard Roberts: I perceive you might have a chemical science background. You entered the mining business not too lengthy after you bought your PhD. What are probably the most compelling/constructive messages you possibly can convey to Mongolia’s youth about the way forward for the mining business within the nation, and the longer term prospects for them?
Battsengel Gotov: My journey from chemical science to the mining business has proven me how deeply linked these two areas are. They’re not separate worlds in any respect.
If I have been to present a message to Mongolia’s youth it will be that the way forward for our mining business hinges on sustainable and progressive practices. Nevertheless, one of many massive challenges I’ve confronted is the hole between what our workforce is educated for and what the business really wants. This expertise has underscored the significance of aligning our workforce preparation with the calls for of the business, reasonably than producing graduates in fields the place there are fewer alternatives.
For younger professionals this implies there are important alternatives in areas crucial to the way forward for mining, like environmental administration, digitalisation, and compliance with security and environmental laws. These fields not solely provide nice profession prospects but additionally present the prospect to make an actual affect on the sustainable growth of our nation. Furthermore, the brand new technology of business personnel in Mongolia is more and more fluent within the worldwide language of mining. This functionality permits them to play a major position in managing buyers’ actions responsibly and persistently from the very starting.
The mining business is evolving, and it wants individuals with the precise expertise to drive this modification. If Mongolia’s youth can align their schooling and coaching with what the business actually wants, they received’t simply be coming into the workforce, they’ll be main and innovating inside it.
Richard Roberts: Do you anticipate this yr to be the pivotal level in relation to Mongolia’s mining/funding regulation – the regulatory panorama – or do you see that altering additional into the longer term?
Battsengel Gotov: This yr is vital for Mongolia’s regulatory panorama, notably with the current election of a brand new parliament. Our main focus is on making certain that the regulatory setting stays steady and predictable, which is essential for attracting and retaining funding. Members of the brand new coalition authorities might be attending this yr’s IMARC to emphasize our dedication to consistency and transparency inside the authorized framework. Whereas there could also be gradual enhancements and updates to the legal guidelines within the coming years, the important thing message is that we’re dedicated to sustaining a steady setting that buyers can depend on. This method will assist long-term development and sustainability in Mongolia’s mining sector.
Richard Roberts: I be aware the affiliation’s current feedback about its priorities for 2024-25, together with enhancing international cooperation and attracting international/different buyers. What steps are you taking up these fronts?
Battsengel Gotov: For 2024-25, we’re actually targeted on boosting Mongolia’s presence within the international mining neighborhood and attracting sustainable long-term investments. To step up our international cooperation, we’re actively connecting with worldwide mining associations like these in Canada and Chile to share information and be taught from one another. We’re additionally engaged on establishing extra bilateral agreements to make cross-border collaboration and funding simpler.
On the subject of attracting international buyers, our prime precedence is making our regulatory setting extra clear and steady, as a result of we all know that’s key to constructing investor confidence. We’re additionally highlighting Mongolia’s wealthy useful resource base and the potential for brand spanking new discoveries at occasions like IMARC and Mongolian Mining Week. These occasions will showcase initiatives on the lookout for new investments and are nice alternatives to reveal what our business has to supply.
Participation of our member organizations might be important, reinforcing the robust curiosity and involvement of our business in these initiatives. By strengthening {our relationships} with international companions and making certain a beneficial funding local weather, we’re aiming to herald the form of funding that may gasoline sustainable development in our mining sector.
Richard Roberts: What are the core messages you’ll carry to the IMARC occasion in Sydney in October and who will they be aimed toward?
Battsengel Gotov: On the IMARC occasion in Sydney our predominant message might be concerning the unbelievable alternatives and partnerships that Mongolia has to supply. Mongolia is about to turn into a key participant within the international mining sector, particularly in supplying the crucial minerals wanted for the world’s transition to inexperienced vitality. We’ll emphasise that Mongolia isn’t simply wealthy in sources—we’re additionally deeply dedicated to sustainable and accountable mining practices.
One among our key focuses proper now could be advancing geological surveys to raised perceive and faucet into our huge mineral wealth. By investing in these surveys we’re not solely figuring out new alternatives for discovery but additionally demonstrating our dedication to offering correct and dependable knowledge to potential buyers and companions.
Moreover, our benefit in fixing infrastructure issues step-by-step and our strategic proximity to China, the world’s largest importing nation, allow us to provide minerals at a low value and brief distance. This logistical edge is essential for our competitiveness.
Our message is obvious: we’re open for enterprise and keen to attach with buyers, mining firms, and know-how suppliers seeking to faucet into rising markets. We’re in search of companions who share our imaginative and prescient of long-term sustainable development. We’ll additionally spotlight the progress we’ve made in constructing a steady and clear funding setting, which is important for creating robust, mutually useful relationships with our worldwide companions.
Richard Roberts: The affiliation’s CEO Erdenetuya Ganbold stated lately: “One of many main challenges confronting the mining business in our nation is the disparity in stakeholder understanding and the inadequate accessibility and transparency of details about the mining business. As our affiliation believes that the answer to those issues is accountable mining, we targeted on localizing and selling accountable mining inside the business. To realize this goal, now we have examined the experiences of associations in extremely developed mining nations like Australia and Canada. Since 2018, now we have developed the Accountable Mining Code and launched it to roughly 40 organizations inside the mining sector.” Firstly, are you able to please speak concerning the code … What are its main goals? What’s it based mostly on?
Battsengel Gotov: The Accountable Mining Code was created as a result of we recognised the necessity for a extra constant and clear method to mining in Mongolia. The aim is easy: to make sure that mining operations are socially, environmentally, and economically accountable. We took inspiration from worldwide greatest practices, particularly from nations like Australia and Canada, which have robust frameworks for accountable mining. Nevertheless, we didn’t simply copy and paste. We tailored these practices to suit Mongolia’s distinctive state of affairs, specializing in elements like environmental care, participating with native communities, and moral enterprise practices.
The code acts as a information for our members, serving to them align with international requirements whereas additionally addressing native challenges. By selling accountable mining we’re aiming to construct belief with stakeholders, minimise environmental affect, and be sure that the advantages of mining are shared pretty throughout society.
Richard Roberts: What are among the tangible/seen outcomes from the introduction of the Accountable Mining Code that you just’ve seen up to now?
Battsengel Gotov: Since we launched the Accountable Mining Code we’ve seen actual constructive modifications within the business. Corporations which have adopted the code are noticeably enhancing their environmental administration practices. This contains extra rigorous monitoring of their environmental affect, higher waste administration, and simpler land reclamation efforts. It’s clear they’re taking these duties critically.
We’ve additionally seen a major enhance in neighborhood engagement. Mining firms are actually extra proactive in involving native communities of their decision-making processes, making certain that their voices are heard and their issues are addressed. This has been a game-changer in constructing stronger relationships with the individuals immediately affected by mining actions.
One other massive win is the elevated transparency in reporting and operations. This has gone a good distance in constructing belief between mining firms and stakeholders, together with native communities, authorities businesses, and buyers. These outcomes present that the Accountable Mining Code isn’t only a set of tips, it’s a catalyst for significant change in Mongolia’s mining business.
Richard Roberts: What subsequent steps may you’re taking with this code, or what extra steps should be taken (if any) in an evolutionary sense?
Battsengel Gotov: As we proceed to advertise and refine the Accountable Mining Code, our focus now could be on increasing its adoption and weaving it extra deeply into the material of Mongolia’s mining business. We’re notably wanting to see extra firms, particularly smaller and rising ones, embrace the code’s rules.
Wanting forward, we’re excited concerning the adoption of the In the direction of Sustainable Mining (TSM) initiative by our board members, which is about to start subsequent yr. This can be a massive step ahead as TSM gives a stable framework for sustainability, boosting accountability and transparency throughout the mining sector. The adoption of TSM might be a major milestone, elevating the bar for accountable mining practices in Mongolia.
We’re additionally exploring methods to strengthen the monitoring and enforcement mechanisms related to the code to make sure it’s utilized persistently and rigorously throughout the business. As we transfer ahead we’re contemplating how the code can evolve to sort out new challenges, corresponding to integrating renewable vitality into mining operations and managing crucial minerals. Because the business modifications, so too should our method to accountable mining, making certain it stays related and continues to advertise sustainable growth successfully.
Richard Roberts: Mining Week 2024 in October would be the third time this occasion has been held. How has it developed in that point (reflecting change within the business)?
Battsengel Gotov: Mining Week has actually grown because it first began, evolving alongside Mongolia’s mining business. What started as an easy occasion to showcase the nation’s mining potential and appeal to funding has expanded into one thing a lot larger. Now, it’s not nearly bringing in buyers, it is about sustainability, innovation, and collaboration.
Probably the most thrilling modifications this yr is the addition of the MinePro occasion. This new phase dives deeper into the most recent applied sciences and gives specialised business coaching, making the entire week much more helpful. With this growth, we’re seeing extra worldwide participation and a wider vary of matters, from digitalisation to accountable mining practices.
What’s much more spectacular is that this yr, the Worldwide Mining Associations’ Roundtable Assembly and the Ambassadors’ Roundtable Assembly might be hosted throughout Mining Week. We’ve additionally prolonged invites to company buyers, capital market analysts, monetary market consultants, worldwide exchanges, and steel exchanges, all with the assist of embassies in Mongolia and Mongolian embassies across the globe.
Mining Week has actually turn into the go-to platform for discussing the business’s largest challenges, corresponding to navigating regulatory modifications, addressing environmental issues and assembly the demand for expert labour. By maintaining with the business’s evolving wants, Mining Week, now enhanced with MinePro, has solidified its position as a key discussion board for dialogue, studying, and partnership, serving to to form the way forward for mining in Mongolia. And only a heads up—the occasion is going on from October 2-5, 2024.
Richard Roberts: Why is IMARC an vital platform for Mongolia’s mining business/the affiliation?
Battsengel Gotov: IMARC is such an important platform for Mongolia’s mining business as a result of it provides us unbelievable entry to a worldwide viewers of business leaders, buyers, and innovators. For our affiliation, being a part of IMARC is a incredible alternative to place Mongolia’s mining potential within the highlight, attracting curiosity and funding from worldwide markets. Plus, it’s an opportunity for us to faucet into international developments and applied sciences, that are essential for maintaining our business aggressive and future-ready.
What’s nice about IMARC is that it additionally opens doorways for networking and collaboration with different mining nations. We get to be taught from their experiences and apply the very best practices that match our context. The occasion can also be an ideal stage to showcase our dedication to accountable mining and sustainable growth, that are prime priorities for Mongolia as we attempt to stability financial development with environmental care.
By collaborating in IMARC, we will strengthen our worldwide partnerships, spotlight our ongoing efforts to enhance the funding local weather, and guarantee Mongolia stays a key participant within the international mining sector. Moreover, this yr, members of the brand new coalition authorities might be current at IMARC to debate how we will work persistently inside the authorized framework and additional appeal to funding. It’s a transparent demonstration of our dedication to sustaining a steady and clear regulatory setting that fosters long-term development
