Mining Sector Week Opens, Planned Legal Reforms Outlined

Ulaanbaatar, January 27, 2026 /MONTSAME/. A “Mining Sector Week” event was launched on January 26, 2026, organized by the Ministry of Industry and Mineral Resources in cooperation with the Ministry of Economy and Development, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), and the Mining Association. The event aims to improve investment conditions in the mining sector in line with government policy, protect investors’ legitimate interests, and strengthen public–private partnerships.

Opening the week, Minister of Industry and Mineral Resources Damdinyam Gongor stated that the mining sector is introducing multifaceted policy reforms to shift from extraction to processing, to produce value-added products, increase exports, and boost tax revenues. He also highlighted the sector’s contribution to the national economy.

Specifically, the mining sector accounts for 26 percent of GDP, 79 percent of industrial output, 95.4 percent of export revenues, 74 percent of foreign direct investment, and 28.4 percent of consolidated budget revenues. According to the ministry, of the MNT 99.38 trillion in foreign investment attracted between 2015 and 2024, nearly 80 percent went to the mining sector.

The minister noted that preparations are underway to revise mining and industrial policies, as well as amend the Law on Minerals, in the coming years. Public consultations to gather public proposals and feedback on the draft concept of the amendments, will be held this week.

He explained that, alongside amendments to the Law on Minerals, several related laws are being prepared. Subsequently, the Law on Heavy Industry, the Law on Petroleum, and the Law on Petroleum Products will be revised. The objective is to move away from exporting raw materials toward processing minerals domestically and producing final products, thereby increasing value addition and retaining greater benefits from natural resources within the country. These legislative changes will align with the government’s broader Investment Law and Business Support Law, forming a core pillar of state policy.

The draft amendments to the Law on Minerals, planned for submission to the spring session of parliament, include several key provisions.

First, a new selection mechanism will be introduced for granting exploration licenses. Licenses may be issued through applications or competitive bidding. While obtaining a license will be simplified, holding an exploration license without conducting exploration will become costly and restrictive.

Second, the draft law includes regulations on critical minerals. As many countries adopt policies targeting high-technology raw materials and implement projects for the exploration, extraction, beneficiation, and processing of critical minerals, Mongolia will approve its own list of critical minerals and align its policy with global trends.

Third, the methodology for calculating royalties will be revised to increase benefits for local communities. Benchmark prices for royalty calculations will be based on Mongolian Stock Exchange prices; progressive copper royalty rates will be aligned with international standards; and royalty rates for processed and refined products will be optimized to encourage value-added production. The draft also proposes aligning royalty rates on associated elements in concentrates with international standards and increasing the revenue share from royalties allocated to aimags and local governments where mining operations take place.