Mongolian mining business and authorities leaders will likely be a part of a robust 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 financial system and mining sector.
Dr Gotov (pictured proper), CEO of Mongolian Mining Company since Could 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 will have been concerned in Mongolia’s mining business for about 20 years. What makes you extra optimistic than pessimistic as we speak concerning the future prospects for the business?
Battsengel Gotov: Mongolia’s mining business has at all times been the spine of our nation’s financial 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 a significant function in Mongolia’s financial system within the foreseeable future. The worldwide demand for important minerals is growing sharply in reference to the inexperienced transition, which opens to Mongolia a singular alternative to emerge and set up itself as a key participant within the international provide chain. Worldwide cooperation and commerce will likely 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 last decade the nation has managed to advance step-by-step a number of infrastructure initiatives. I imagine that such progress will enable simpler entry for export merchandise from Mongolia to China and different worldwide markets as effectively. This logistical benefit is essential for sustaining our competitiveness on the worldwide stage.
Lastly, the business is shifting in the direction of extra accountable and sustainable mining practices, which isn’t solely lowering environmental impacts but in addition strengthening relationships with native communities. This shift can be an essential issue to draw rising curiosity from worldwide traders, who grew to become extraordinarily delicate to ESG metrics as one in all key funding standards as effectively.
Certain, there’ll at all times be challenges, however resilience and flexibility, mixed with give attention to important minerals, infrastructure growth, and accountable enterprise practices, will likely be instrumental drivers for the way forward for the mining business.
Richard Roberts: I perceive you’ve gotten a chemical science background. You entered the mining business not too lengthy after you bought your PhD. What are essentially the most compelling/constructive messages you may 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 related these two areas are. They’re not separate worlds in any respect.
If I have been to provide a message to Mongolia’s youth it could be that the way forward for our mining business hinges on sustainable and revolutionary practices. Nevertheless, one of many huge challenges I’ve confronted is the hole between what our workforce is educated for and what the business truly 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 vital alternatives in areas important 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 in addition present the prospect to make an actual influence 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 big function in managing traders’ actions responsibly and constantly from the very starting.
The mining business is evolving, and it wants folks with the fitting expertise to drive this variation. If Mongolia’s youth can align their training and coaching with what the business actually wants, they gained’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 legislation – the regulatory panorama – or do you see that altering additional into the longer term?
Battsengel Gotov: This yr is essential for Mongolia’s regulatory panorama, notably with the current election of a brand new parliament. Our major focus is on making certain that the regulatory setting stays secure and predictable, which is essential for attracting and retaining funding. Members of the brand new coalition authorities will likely be attending this yr’s IMARC to stress 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 secure setting that traders can depend on. This method will assist long-term development and sustainability in Mongolia’s mining sector.
Richard Roberts: I word the affiliation’s current feedback about its priorities for 2024-25, together with enhancing international cooperation and attracting international/different traders. 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 data and study from one another. We’re additionally engaged on establishing extra bilateral agreements to make cross-border collaboration and funding simpler.
In terms of attracting international traders, our prime precedence is making our regulatory setting extra clear and secure, 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 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 display what our business has to supply.
Participation of our member organizations will likely be vital, 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 type of funding that may gas sustainable development in our mining sector.
Richard Roberts: What are the core messages you’ll deliver to the IMARC occasion in Sydney in October and who will they be geared toward?
Battsengel Gotov: On the IMARC occasion in Sydney our important message will likely be concerning the unbelievable alternatives and partnerships that Mongolia has to supply. Mongolia is about to develop into a key participant within the international mining sector, particularly in supplying the important 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.
Considered one of our key focuses proper now’s 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 in addition demonstrating our dedication to offering correct and dependable knowledge to potential traders 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 price and brief distance. This logistical edge is essential for our competitiveness.
Our message is evident: we’re open for enterprise and keen to attach with traders, 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 secure 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 mentioned just 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, we’ve examined the experiences of associations in extremely developed mining international locations like Australia and Canada. Since 2018, we’ve developed the Accountable Mining Code and launched it to roughly 40 organizations inside the mining sector.” Firstly, are you able to please discuss concerning the code … What are its major goals? What’s it primarily based 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 purpose is straightforward: to make sure that mining operations are socially, environmentally, and economically accountable. We took inspiration from worldwide greatest practices, particularly from international locations 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 influence, and be certain that the advantages of mining are shared pretty throughout society.
Richard Roberts: What are a few of the tangible/seen outcomes from the introduction of the Accountable Mining Code that you just’ve seen to date?
Battsengel Gotov: Since we launched the Accountable Mining Code we’ve seen actual constructive adjustments within the business. Firms which have adopted the code are noticeably enhancing their environmental administration practices. This consists of extra rigorous monitoring of their environmental influence, higher waste administration, and simpler land reclamation efforts. It’s clear they’re taking these duties critically.
We’ve additionally seen a big 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 considerations are addressed. This has been a game-changer in constructing stronger relationships with the folks instantly affected by mining actions.
One other huge win is the elevated transparency in reporting and operations. This has gone a great distance in constructing belief between mining firms and stakeholders, together with native communities, authorities businesses, and traders. 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 further steps must be taken (if any) in an evolutionary sense?
Battsengel Gotov: As we proceed to advertise and refine the Accountable Mining Code, our focus now’s on increasing its adoption and weaving it extra deeply into the material of Mongolia’s mining business. We’re notably desirous to see extra firms, particularly smaller and rising ones, embrace the code’s rules.
Trying 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 huge step ahead as TSM supplies a stable framework for sustainability, boosting accountability and transparency throughout the mining sector. The adoption of TSM will likely be a big 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 constantly and rigorously throughout the business. As we transfer ahead we’re contemplating how the code can evolve to deal with new challenges, akin to integrating renewable vitality into mining operations and managing important minerals. Because the business adjustments, 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 advanced 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 traders, it is about sustainability, innovation, and collaboration.
Some of the thrilling adjustments this yr is the addition of the MinePro occasion. This new phase dives deeper into the most recent applied sciences and supplies specialised business coaching, making the entire week much more invaluable. With this enlargement, 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 will likely be hosted throughout Mining Week. We’ve additionally prolonged invites to company traders, 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 develop into the go-to platform for discussing the business’s largest challenges, akin to navigating regulatory adjustments, addressing environmental considerations and assembly the demand for expert labour. By maintaining with the business’s evolving wants, Mining Week, now enhanced with MinePro, has solidified its function 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 occurring from October 2-5, 2024.
Richard Roberts: Why is IMARC an essential platform for Mongolia’s mining business/the affiliation?
Battsengel Gotov: IMARC is such a significant platform for Mongolia’s mining business as a result of it offers us unbelievable entry to a worldwide viewers of business leaders, traders, and innovators. For our affiliation, being a part of IMARC is a improbable 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 tendencies and applied sciences, that are essential for conserving 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 study from their experiences and apply the very best practices that match our context. The occasion can be an ideal stage to showcase our dedication to accountable mining and sustainable growth, that are prime priorities for Mongolia as we attempt to steadiness financial development with environmental care.
By taking part in IMARC, we are able to 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 will likely be current at IMARC to debate how we are able to work constantly inside the authorized framework and additional appeal to funding. It’s a transparent demonstration of our dedication to sustaining a secure and clear regulatory setting that fosters long-term development
