Government Approves Draft Amendments to the Law on Minerals for Parliamentary Submission

Ulaanbaatar, Mongolia — At its regular Wednesday meeting, the Government of Mongolia reviewed and approved a draft law introducing amendments and additions to the Law on Minerals. The draft has been finalized for submission to the State Great Khural (Parliament) for consideration.

If adopted, the legislation will enable the immediate commencement of mining operations at the Tsagaansuvarga deposit and facilitate the advancement of more than ten major projects that are currently ready for implementation, including the Kharmagtai deposit.

Minister of Industry G. Damdinyam, while presenting the proposed amendments, highlighted the strategic importance of the copper sector, stating that it is poised to become the second pillar of Mongolia’s economy.

“By accelerating the development of the copper sector, we will unlock over ten stalled projects. This will increase our country’s export capacity by approximately 50 percent and enhance the benefits distributed to citizens through the sovereign wealth fund. Alongside a unified mining policy, the government is committed to implementing internationally competitive, commodity-specific policies,” the Minister stated.

A key provision of the draft law includes aligning copper royalty rates with international benchmarks. This measure is expected to improve investment attractiveness and support the rapid development of major projects such as Tsagaansuvarga and Kharmagtai.

The draft also proposes revising the allocation of mineral royalties (AMNAT). Currently, 10 percent of total revenues are directed to the Local Development Fund. The amendment seeks to increase this share to 15 percent and expand distribution beyond the aimag level to include soums. Allocation will be based on criteria such as population size, geographic remoteness, licensing activity, and cooperation with responsible mining operations.

Additionally, the legislation introduces provisions to define and formally designate critical minerals, in line with global trends, and aims to simplify the process for obtaining exploration licenses. These reforms are intended to stimulate geological exploration and strengthen the sector’s long-term growth.