1. Mineral Resources and Petroleum Authority of Mongolia CURRENT SITUATION OF ASM IN MONGOLIA 6th Annual CASM Conference November 11th, 2006, Antsirabe, Madagascar Chuluunbaatar Enkhzaya

2. Current Situation of ASM in Mongolia
Mongolia at the Heart of Asia
A Growing Mineral Sector
MRPAM
Artisanal and Small-Scale Mining
Mongolian-Swiss Project
“Sustainable Artisanal Mining”

3. MONGOLIA AT THE HEART OF ASIA

4. Mongolia Location Area 1 564 116 sq. km Population 2,6 Mio
landlocked in NE Asia
Area
sq. km
Population
2,6 Mio
Nationality, Language
Mongolian
Capital
Ulaanbaatar
Climate
Continental, -/+ 30ºC
Literacy rate
96%
Economy
Agriculture, Mining,
Tourism, Service
GDP per capita
650 USD (2005)

5. A GROWING MINERAL SECTOR

6. A Growing Mineral Sector%
2002
2003
2004
2005
Of GDP
10.1
12.7
17.3
18.0
Of GIP
47.3
49.6
64.7
65.5
OF EXP.
56.7
58.9
70.8
75.8
CVRD, BHP Billiton, Rio Tinto etc.

7. Production of Mining sector
Mineral products
(6000 deposits, 80 types of commodities)
2004
2005
2006*
Copper in concentrate, th.tn
130,0
126,3
130
Molybden in concentrate, th.tn
1140,9
1153,0
1160,0
Cathode copper, tn
2376,0
2474,5
2500
Gold /chemical pure/, kg
18,6
21,9
23.0
Fluorspar concentrate, th.tn
104,8
93,7
95,0
Metallurgical fluorspar, th.tn
206,7
233,4
250,0
Coal, th.tn
6794,7
8255,8
8500,0
Zinc concentrate, th.tn NEW -
22,8
Iron, th.tn NEW
33,5
167,7

8. MINERAL RESOURCES AND PETROLEUM AUTHORITY OF MONGOLIA

9. Mineral Resources and Petroleum Authority of Mongolia
(MRPAM)
Implementing Agency of the Mongolian Government: policy in geology, mining, petroleum
5 Offices:
Geological Survey
Mining Office
Cadastre Office
Petroleum Exploration Office
Petroleum Production Office
2005: SAMU (responsible for ASM) within Mining Office

10. ARTISANAL AND SMALL-SCALE MINING

11. ASM: Dissemination and Production
Began in 1997, informal
About miners
In 18 out of 21 Provinces
36.7 mio. USD = 15% of GMP:
Gold (hard rock, placer)
1.7 tn mio. USD
Coal
521 th.tn mio. USD
Fluorspar
51 th.tn mio USD
Gemstone, fossilized wood, mica, sand, gravel and clay

12. ASM: Positive Impacts and Problems
Creating Employment
Increasing Income
Supporting Local economy
Problems
Child Labor
Health & Safety
Environment
Other Resource Users
Criminality

13. ASM: A Comprehensive Strategy
Comprehensive Strategy: in process, within the National Development Strategy
Public Discussion and Hearing: National Forum on Mining, Regulation and Environment in May 2006
Vision: controlled utilization of common resources for sustainable development with a pro-poor economic growth

14. ASM: An Integrated Approach
a formalised, profitable sub-sector of Mongolian economy, directly impacting the income situation of the population – especially rural population – contributing to local development and poverty reduction.
Developing ASM into a new, small and medium sized mining sector – small and medium-sized enterprises - as one of realistic ways to diversify the rural economy
Legal framework: law draft submitted to the Parliament
Challenges and many open questions, e.g.:
Engaging all stake holders, especially miners (networks)
Commercialization for sustainable income (value-adding)
Conflict with other resource users, good governance etc.

15. “SUSTAINABLE ARTISANAL MINING” PROJECT

16. Sustainable Artisanal Mining Project
SDC - MRPAM Sustainable Artisanal Mining (SAM) since July 2005
Goal: Artisanal miners are recognized as responsible members of a key economic sub sector contributing to sustainable rural development of Mongolia

17. Objectives
transparent and straight-forward policy and regulatory framework
institutional structures and organizations at all levels
profitable and responsible mining and extended business activities
artisanal miners and other resource users: socio-ecologic management

18. THANK YOU FOR YOUR ATTENTION