What have been the most significant updates at MNREC?

A major milestone was the pilot testing for the Khalzan Buregtei (KB) project, finalizing the processing and refining pathways using modern technology. The Phase 1 mineral processing stage was finished about a month ago, and we are now proceeding to Phase 2, the concentrate refining stage. The pilot test work will be completed early next year. 

Secondly, we are working to finish our feasibility study to fully envision the scale of the project and its economic viability throughout its mine life. Thirdly, we have taken steps forward in our relationship with the local community and their knowledge of REEs to allow us to move KB towards development. 

How do you view the REE market and MNREC’s position within it?

KB has a combination of heavy and light earths, both of which can be used in permanent magnets. The permanent magnet market has meant quite a positive outlook for REEs over the coming years. The NdPr market has been relatively stable, and whilst dysprosium and terbium have been in serious demand for some time. 

On the other hand, REEs are a niche product with global competition; therefore, timing to enter the market is of the utmost importance. 

What is Mongolia’s position in the global REE market?

We are positioned well in terms of responsible mineral product sourcing. Mongolia has extensive experience with large-scale mining with well-set-up institutions that oversee it. On top of that, society is very active in the mining space in terms of the environmental footprint of mining. There are many CSOs and NGOs that are working to make mining better for all Mongolians. With that, there is a limited space to be irresponsible in the industry. 

However, the country continues to be challenged in expanding its energy capacity, especially in renewables. 

Where should the government focus its efforts to bolster the mining industry in Mongolia? 

Firstly, the continuation of policies and their effective implementation are critical for our sector. Secondly, the sector-wide investment climate, particularly access to exploration rights and security of mining rights, is critical. Thirdly, institutional capacity building is crucial. Not just for the mining and environment, but at the local governance level. It would be best if the topic were mandatory to learn at the primary level of local government, so they can better implement the policies at the Bagh, Soum, and Aimag levels. It is very common for the largest gap in the policy implementation to occur at the Bagh and Soum levels.   
  
Despite the changes in leadership at the top government level, the efforts toward reputation saving and attracting mining investment in the exploration stage have remained constant, but with little success. This indicates that the Government of Mongolia needs to take decisive actions in changing the investment deterrent policies. If you look at the past 10-15 years of history of Mongolian Mining, you can easily observe that many foreign and domestic investors have plateaued or ceased their investment towards their Mongolian assets, now holding them in suspension, awaiting the policies to become more trustworthy and favorable.  

How can Mongolia overcome its challenges in energy access?

KB is located in western Mongolia, a region that is independent from the Russian energy system. The existing transmission lines are capped and outdated for renewables. However, there is potential to generate renewable energy there and there is land to build the infrastructure. Currently, a semi-large-scale hydroelectric project is being built, highlighting the region’s potential, which will help pave the way for many green energy sources. Hopefully, these will be able to provide a reliable and sizeable amount of energy to the mining projects of the region. 

What are your plans for MNREC in the next 12 months?

We will continue to pursue our ambition to develop a flagship REE project in Mongolia. Our feasibility study will be finalized in the next 12 months, drawing a clear picture towards the development of KB.  From there, we will continue towards the detailed engineering and the construction stages. We will continue to engage with the community in preparation for physical construction. With the megaprojects planned by the government, their interest in REEs is only increasing.