Mining representatives criticize state participation in mining

Foreign and domestic mining sector representatives at the meeting held on Monday

On Monday, the Ministry of Mining and mining sector representatives from Afghanistan, Kyrgyzstan, Laos, and Myanmar held a discussion titled, “State Role and Participation in Major Mineral Resources Projects” and noted that state participation in Mongolia’s mining sector is too great.

The meeting’s participants discussed and exchanged views about state participation in implementing major mining projects. They said that in developed countries state participation in mining projects is minimal, while in developing countries like Mongolia the state’s participation tends to be greater. In accordance with Mongolian law, state participation in mining should be represented with a stake of 34 to 51 percent. Mining sector representatives note that this regulation permitting a greater degree of state ownership in mining deposits can increase financial risk for mining companies. They said that state participation can limit opportunities for mining companies to move forward on projects in accordance with market principles.

The discussion was organized by the Foundation for International Cooperation and Canadian International Resources and Development Institute.