Could you give us an overview of SRK Mongolia?

SRK started to serve Mongolia in 2007 from our Beijing Office, leveraging the big rush of interest from Chinese investors in Mongolia. More requests for projects in Mongolia came through, so SRK decided to open a representative office in 2010, then a consulting practice in 2012. The first couple of years were good, but soon after the market changed. The government at the time won the election on the basis of resource nationalism, which, together with a depressed commodities market, led to a shortage of foreign investment. This double shock was a reality check for many who had thought the commodity boom would last forever. Today, however, Mongolia's burgeoning mining industry is once again drawing the investors’ attention, although past experiences have prompted a more cautious approach.

How did SRK survive those difficult years and how has the investment climate changed?

To survive that period we had to monitor costs very carefully, maintain a leaner team and strengthen our collaborations. Since the Mongolian market is quite small, we only retained in-country geology and Mineral Resource estimation expertise, although we are now starting to build geotechnical and hydrogeology disciplines, as well as some open-pit mining engineering. For other disciplines like environmental or infrastructure, we tap into the resources of the wider SRK family and associates. 

While there is a continuing nationalistic sentiment, which is embedded in the legislative framework, there is also a recognition that foreign investment is required to build the industry and more broadly the infrastructure and services. For instance, the law for strategic mineral deposits potentially allows the government to take over an asset discovered and developed by a third party by declaring it of ‘strategic importance.’ There is this dichotomy that results in a cautious approach from even experienced mining investors. However, I am cautiously optimistic that in the medium to longer term, appropriate, well-balanced outcomes will occur, which should result in increasing direct foreign investment, leading to a more vibrant mining industry, as well as increased local wealth creation and better infrastructure and services for communities.  

Which of SRK’s services are most demanded or relevant in Mongolia?

Our most in-demand service is for independent technical reporting (ITR). Many Mongolians applied for or bought exploration licenses because they saw these as a potentially good wealth-creation asset, but, to attract foreign investment, the owners require a review of the exploration potential or, if there is a resource in place, they need to transfer the Mongolian standard resource into an internationally recognized reporting standard for Mineral Resources, for example, the guidelines of the JORC Code. Compared to when I first started undertaking project work in Mongolia, these days, Mongolian licence holders recognise the importance and value of having their projects independently assessed against an international industry reporting standard. In addition to ITR-style work, exploration management and Mineral Resource estimation and reporting to the JORC Code guidelines are the other in demand services for us. 

What specific challenges do you face in Mongolia?

Managing payment schedules and client expectations are two crucial challenges for any service-based business and we are no exception. Some customers may request a service without the money to pay for it. Secondly, some companies may see an independent technical report as a marketing brochure to attract financing rather than the independent technical assessment, which we need to undertake and report. 

What are SRK’s main objectives for 2024?

SRK is continuously building on the strong foundations we have established in Mongolia over the past 15 years, while also looking at opportunities to introduce innovative ways to capture data and carry out analysis and estimation work. For example, we have recently introduced a tool for geotechnical mapping, together with several other new technologies to improve data collection that help facilitate discoveries of abundant minerals in Mongolia such as copper, nickel, cobalt, and other battery minerals. In the future, I want to see SRK conducting more multidisciplinary project studies in Mongolia. Our vision is to assist both local project owners and investors, and, in a broader sense, assist Mongolia in developing successful projects and raise the profile of the country as a preferred global mining destination.