Tap into Mongolia’s expanding mining future

Boasting some of the world’s largest copper and gold deposits, Mongolia is well positioned to support the growing global demand for minerals essential to the green transition.

Mongolia’s geographic position provides proximity to the expanding end-markets in Asia.¹ With world-class minerals and ore, Mongolia offers a range of opportunities for Australian METS.

The country also hosts significant reserves of untapped rare earth elements.² Key for high-tech applications, these minerals could see the nation become a key supplier of rare earth elements (REE) in the future as nations seek to diversify their supply chains.

Mongolia’s vision for mining and infrastructure

Mongolia’s mining sector drives the nation’s economy, accounting for 89% of total exports³ and 74% of foreign direct investment.⁴

The country’s long-term development policy, Vision 2050, envisions significant minerals exploration and mining and infrastructure development, particularly the expansion of the nation’s road and rail network.⁵

The policy also places a significant focus on low-carbon, efficient and inclusive green development.⁶ These factors will be critical to unlocking Mongolia’s abundance of untapped resources.

Dig into the opportunities offered by Mongolia’s mining sector

The Mongolian market is anticipated to continue to offer a range of opportunities for Australian METS over the coming years. Large Mongolian, foreign-owned and joint venture projects will continue to offer the greatest opportunities for Australian METS in the region.

The Mongolian market also offers untapped potential for geological surveying and greenfield exploration. Only approximately 30% of Mongolia has been fully geologically mapped ⁷ and significant interest continues to build over lithium, cobalt, silica nickel and REE reserves.⁸

Environmental impact assessments are a key part of obtaining necessary mining licences and licence renewals in Mongolia. The increasing focus on sustainable mining in Mongolia will see quality-conscious companies continue to look toward sustainable solutions when procuring equipment and technical services for high-end projects.⁹

A significant focus on mine closure and rehabilitation will also provide opportunities for companies to offer their expertise in waste disposal, tailings management and land rehabilitation.¹⁰

Another key area for development in the Mongolian mining sector is in vocational training due to the stipulated ratio of Mongolian workers to foreign workers in mining projects. This will continue to open doors for Australian METS to partner with local training institutions, mining companies and government to support the growing demand for skilled local workers and safe mines.¹¹

In addition to increasing appetite for mine-to-market rail design and road construction, expanding mining operations will also demand improvements to energy infrastructure and reliability. Intensive mining will require advanced water management and recovery solutions, which Australian companies are well placed to provide.

From greenfield exploration to construction, infrastructure and skills development, Australian METS are well positioned to share their expertise in these areas in the Mongolian market.

Mongolia has significant reserves of untapped rare earth elements with magnetic properties.

Australian businesses: Trusted partners in Mongolia

Australia is officially seen as a ‘third neighbour’ to Mongolia, reflecting Australia’s position as a trusted partner in business and investment, particularly in the mining sector.¹² Australian goods and services have a solid reputation in the Mongolian market and strong brand awareness across all sectors.¹³

Encouraging Australian projects in Mongolia includes:

• In 2023, Xcalibur Smart Mapping delivered data for the Mongolian National Geological Survey.¹⁴
• This September, ASX-listed Aspire Mining secured government backing for a critical infrastructure project to support its Ovoot coking coal project.¹⁵
• In April, Rio Tinto partnered with the University of Queensland and JKTech to launch the South Gobi Underground Mass Mining Institute at the Oyu Tolgoi mine.
• NOJA Power, an Australian manufacturer of electrical switchgear, has supplied projects in Mongolia with automated circuit breakers and network solutions to improve the reliability of energy infrastructure.¹⁶ Austrade is proud to have supported NOJA Power’s expansion into Mongolia.

Australian company Motium has partnered with a company in Mongolia to develop a fit-for-purpose rugged technology product suitable to the country's extreme conditions.¹⁷

Home to one of the world largest copper and gold mines

Oyu Tolgoi, in the Ömnögovi province, in the Gobi Desert is one of the world’s largest known copper and gold deposits. The mine, operated by Rio Tinto in partnership with the Mongolian Government, is the largest development in the country backed by foreign investment.¹⁸ Open-pit operations started in 2013, and in 2023 the mine expanded underground.

Oyu Tolgoi’s workforce is 96% Mongolian¹⁹ and at peak production, the mine is expected to produce 500,000 tonnes of copper per annum. This is equivalent to the copper required to build 16,400 electric battery vehicles and 1,580 wind turbines per day. The mine uses advanced safety technologies including Personal Location Indicators and a state-of-the-art control room to monitor operations which span over 200 kilometres of tunnels.²⁰

By 2030, Oyu Tolgoi is expected to be the world’s fourth largest copper mine.²¹ This expansive mining operation gives an insight into the future of the mining sector in Mongolia and the opportunities for Australian METS in the market.

Connect with Mongolia at IMARC 2025

This October, Austrade will be hosting a large Mongolian delegation at IMARC. Bringing together Mongolian companies and government stakeholders, IMARC will offer a unique chance for Australian METS companies to explore opportunities in Mongolia.

Read about Australian companies at IMARC 2024.

For more information, contact Austrade Senior Business Development Manager, Solongo Dashdendev.

Resources

• Mongolian Mining Projects Report 2023, Austrade
• Mongolia country brief, Department of Foreign Affairs and Trade
• Industry report, Mongolia Inc
• Mongolia’s Development of Critical Minerals: Challenges and Opportunities, National Bureau of Asian Research
• IMARC 2023: Providing an in-depth glance into the opportunities of Mongolia’s mining sector, Mining Beacon
• Why I’m positive about Mongolia’s future: Dr Battesengel Gotov, IMARC
• Mongolia’s Rare Earths Diplomacy and Its Geopolitical Implications, The Diplomat
• Metals and Mining, Invest Mongolia
• Strengthening ties: Australian companies at Mongolia Mining 2024, Mongolian Mining Journal