N. Algaa, Executive Director, Mongolian National Mining Association, discusses the organisation’s activities.
European Times: What is the history of the Mongolian National Mining Association?
N. Algaa: The association was established in 1994 when there were few private companies in Mongolia’s mining sector. It was a perfect time to try to attract investors coming to Mongolia. The primary objectives of the Association are to reflect members’ opinions and suggestions to national mineral resource-development policy, to protect the common rights of our members, and to operate transparently. We are also trying to establish ties with similar organisations, both local and foreign.
European Times: Who are your members?
N. Algaa: We have more than 160 members, including mining, exploration, service providers, national companies, joint ventures, and foreign invested companies. There are few member companies that are listed on the international stock exchange. We report weekly to our members regarding our activities and our plans for the near future, or if draft laws are in progress. We are open to suggestions from our members. We do not have any European exploration companies among our members but we have European service providers and service-equipment producers.
European Times: What does Mongolia’s mining sector need in order to continue to grow?
N. Algaa: Mongolian mining industry is still very young from the private investors’ view. Development is needed in exploration and mining production, depending on market demands, especially in China. Since Mongolia’s lack of infrastructure increases the cost of our commodities, China is the best market for us. Later we could export to other markets, like Korea and Japan, but we need more investment to do this. We need more research, a scientific approach, and more market analyses. To expand our export markets, we need to produce quality products continuously.
We need more public-private partnerships to hasten development as well as a lot of capital.
European Times: What is the Mongolian Mining Association doing to spur on investment in the mining sector?
N. Algaa: We are concentrating on promoting a better business environment, including a stable legal structure; competitive taxes; and a less bureaucratic business climate. We are also focusing on improving human resources.
European Times: What is your personal message to potential investors?
N. Algaa: Mongolia offers many business opportunities, most of them in mining but many in other sectors. Mongolia is trying to establish a favourable and legal environment for businesses, and our new Investment law is a big plus for investors.
