Mongolia is set to announce its list of critical minerals this year

The Mongolian Mining Journal /June 2024/

А. Khaliun

Countries are formulating their mining sector policies. This  entail decisions on the inclusion of specific minerals in their critical mineral lists that have emerged as essential components of national mining sector strategies.

Professional organizations have been  discussing  the formulation of Mongolia’s policy d on the minerals to incorporate into the list and drafted  initial proposals.

An in-depth workshop on mineral resources titled “Critical Minerals: Mongolian and Global Trends, Policies, and Practices” took place on May 22.This was organized by the School of Law at the National University of Mongolia, in collaboration with the Economic and Business Law Research Center and the Association of Key Minerals of Mongolia.. The event focused on current mineral reserves, the legal framework, geological exploration, and the economic advantages associated with these resources. 

The participants also addressed the importance of conducting research to gather essential information for shaping government policies related to critical minerals. Additionally, they emphasized the necessity of creating a comprehensive list of critical minerals specific to Mongolia, along with the required survey for its development.

M. Dagva, the head of the Mongolian Critical Minerals Association, expressed his commitment to developing a policy with multi-stakeholder participation, aiming to align with industry interests and addressing economic, geopolitical, and environmental concerns. Consequently, the Association has initiated collaboration with the Strategic Research Institute and conducting joint research.

There is a pressing need to develop policies aimed at diversifying Mongolia’s economy through the utilization of critical minerals and establishing effective strategies for engaging with strategic partner countries.

MONGOLIA HAS PROPOSED TO DESIGNATE 11  CRITICAL MINERALS

At first, the Association proposed that Mongolia designate 11 minerals as critical , with the initial three being copper, fluorspar, and graphite. This aligns with lists issued by  the United States and the European Union. However, the United States has since updated its list, now including copper among its essential minerals.

The European Union has similarly included copper in its list. Additionally, our country can consider including manganese, which is also listed by the United States and Japan. The Mongolian Critical Minerals Association shares this perspective.

Every country includes rare earth elements, lithium, cobalt, and platinum-group metals in its list of important minerals. Mr. Dagva, the head of the Mongolian Critical Minerals Association, stated that Mongolia has announced its strategic plan for critical minerals and is currently developing policies on investment in this sector, enhancing sectoral cooperation, and determining the types of production to prioritize in the near future.

He emphasized that within Mongolia’s long-term development policy document, “Vision-2050,” there is  a medium-term  program extending up to 2030. He also noted the possibility of aligning the important mineral policy with this overarching plan.

For this purpose, Mongolia plans to assess reserves of critical minerals and compile national data by 2024. The Ministry of Mining and Heavy Industry has initiated a tender, allocating 30 billion MNT for this year to commence geophysical surveys. Discussions on methodologies for geological and chemical research have also begun, signaling Mongolia’s commitment to investing in and advancing this endeavor. 

Mining  at our copper deposits is currently in full swing. Mongolia has the potential to develop a strategy for critical minerals, including plans to produce 1 million tons of copper per year in the near future and 2 million tons by 2050, alongside various related activities. I believe Mongolia is capable of initiating a copper concentrate processing project to produce value-added products, which should be included in the strategic mineral list. Numerous initiatives have been planned, and the list of important minerals is expected to be announced by the end of this year.

G. YONDON: MONGOLIA GAINED GLOBAL ATTENTION DUE TO ITS MINERALS

CEO of Erdenet Mining Corporation SOE G. Yondon 
Foreign investment plays a crucial role in our industry. Concerns have arisen about potential government expansion of the list of strategic deposits and the possibility of nationalization under the National Wealth Fund law. Let me clarify that the list of strategic deposits will not be expanded. Lists No. 1 and No. 2 of Strategic Deposits were already issued in 2007. It is essential to focus on mining these deposits and ensure proper management and distribution of resources.

The implementation of the Law on Mining Products Exchange has illustrated how activities such as exploration, production, processing, sales, and distribution can impact both the country’s economy and the lives of our  people.

To clarify, the list of strategic deposits does not involve taking over deposits owned by the private sector. Instead, it focuses on ensuring a fair distribution of resources from currently operational deposits.

There is a global trend towards natural resource nationalism, where not only African countries but also many democracies are identifying crucial minerals and asserting state control over their deposits. Recent discussions at forums like the G-7, G-20, and other major world meetings have focused heavily on minerals, especially critical ones.

Last year, Polish President Andrzej Duda and French President Emmanuel Macron visited Mongolia. They discussed the exploration of significant mineral deposits and opportunities for cooperation. Additionally, Prime Minister L. Oyun-Erden’s official visit to the United States included discussions with Vice President Kamala Harris on critical minerals. Mongolia’s rich mineral resources have garnered global attention, prompting the government to assert control over key deposits. There is now an urgent need for the state to formulate a comprehensive minerals policy, particularly focusing on critical minerals.

D. KHASHBAT: LITHIUM RANKS FOURTH ON THE GLOBAL LIST OF CRITICAL MINERALS

D. Khashbat, a teacher of mineral studies at the School of Geology and Mining of the Mongolian University of Science and Technology, and senior consultant at Critical Minerals Mongolia LLC, delivered a presentation titled “Lithium Potential of Mongolia”. He began by providing a brief introduction to the mineral lithium.

Lithium is the lightest metal in the Periodic Table, listed at No. 3. It possesses the unique property of easily losing electrons from its outermost active layer and readily accepting them back. This characteristic makes lithium ideal for electrical charge storage. Today, lithium is extensively used in batteries ranging from everyday devices to megawatt-scale electric generators. Notably, the 2019 Nobel Prize in Chemistry was awarded to three scientists-John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino-for their pioneering work in discovering the mechanism and developing the lithium-ion battery.

Compared to 2009, the use of lithium as a raw material for batteries has tripled by 2021. Previously employed mainly in oil refining and lubricants, it has since become pivotal in powering various mobile devices such as smartphones, tablets, laptops, and self-driving cars. u
According to the US Geological Survey’s 2021 global lithium resource report, the world has approximately 10 million tons of lithium in silicate form, 25 million tons in salt-bound form, and 40 million tons of pure lithium.
So, where are these resources located?

Russia and China dominate silicate lithium reserves. Australia, Canada, and several African countries also have significant resources. Salt lithium is primarily found in the South American countries of Chile, Bolivia, and Argentina, collectively known as the ‘Lithium Golden Triangle,’ which holds 80% of the world’s salt lithium reserves. Additionally, Sichuan, China, boasts a substantial amount of lithium.

CURRENTLY, MONGOLIA HAS IDENTIFIED RESERVES OF 656 THOUSAND TONS OF LITHIUM

 “Does Mongolia have lithium?”  To answer the question we initiated lithium exploration in 2016 and by 2019, identified 656 thousand tons of lithium reserves. As of now, the estimated reserves have increased by approximately 24 thousand tons, bringing Mongolia’s total lithium reserves to 683.6 thousand tons. Exploration of two deposits has been completed, and their reserves will be finalized this year.

In spring 2024, we discovered another lithium deposit, bringing our total number of lithium deposits to four.

Interest in lithium research has surged since Covid-19. Khashbat emphasized the positive impact of increased foreign investments in exploration work and  shared the results of his research without providing exact numbers or disclosing the names of the deposits.

Why is the world interested in lithium? Lithium ranks among the top four global critical minerals. It’s difficult to envision life without smart devices; nearly everyone carries a battery or cell phone. So, the demand for lithium remains high. However, its supply is limited. Compared to other minerals, lithium remains relatively unexplored, making its mining challenging.

There are two massive lithium deposits in Tuva, Russia, which borders Zavkhan aimag’s Bayantes soum and Khuvsgul aimag’s Tsetserleg soum in Mongolia. From 2010 to 2013, China conducted lithium exploration across the country, identifying potential lithium-rich areas. In Altai City, Altai Prefecture, China, there is a deposit known in Mongolian as the “Blue Crater”.

Mongolia has silicate lithium deposits. We believe that there are likely salt lithium deposits at altitudes of 2,500 meters above sea level, and currently, we are actively searching for these salt lithium deposits.

Researcher L. Khashbat highlighted the growing interest in lithium exploration not only globally but also within Mongolia.

Lithium exploration is ongoing, and comprehensive data on lithium in Mongolia should be released. Therefore, lithium has rightly been identified as one of the key elements in the list of critical minerals, according to industry experts who participated in the workshop.