2004年-世界发展银行全球_Mongolia___Mining_Sector_Sources_of_Growth_Study_170页_11mb

Summary of the Mongolia Mining Sector Sources of Growth Study

Core Content

This report, prepared by the World Bank in April 2004, evaluates the medium-term growth potential of Mongolia's non-fuel minerals industry and its role in economic growth, poverty reduction, and regional development. It is based on fieldwork conducted in 2003 and builds on previous World Bank projects in the country. The study assesses the current state of the mining sector, identifies constraints, and provides recommendations for improving the investment climate and sector management.

Main Objectives

• Assess the medium-term growth potential of Mongolia's non-fuel minerals industry and SME supply chain linkages.
• Diagnose the state of the Mongolian mining sector and identify problems, constraints, and bottlenecks.
• Provide international comparisons and examples of best practices.
• Formulate options for government actions to improve efficiency, competitiveness, and sector management.

Key Findings

Mining Sector Overview

• Mongolia is a landlocked country with a population of 2.5 million, where mining and agriculture are the dominant economic activities.
• The mining sector contributes about 9% of GDP, 49% of industrial output, and 40% of export earnings.
• The formal mining industry employs over 12,000 people, while the informal (artisanal) sector may involve more than twice that number.
• Mongolia has a vast mineral potential, with over 6,000 mineral showings of 80 different minerals, including base metals, gold, and fluorite.
• The sector has seen a significant rise in exploration activity since the 1997 Minerals Law, which has attracted foreign companies.

Artisanal Mining

• Artisanal mining is a recent phenomenon, driven by economic restructuring and job losses.
• It is labor-intensive, low-cost, and often conducted in the informal sector.
• Artisanal miners primarily work on reclaimed gold-bearing tailings from inefficient commercial placer mines.
• The sector has become part of Mongolia's informal social safety net, creating economic opportunities.
• However, it is seen as a threat to formal mining operations and poses environmental and social risks.
• The government has attempted to regulate it but has not yet established a comprehensive legal framework.

Taxation and Revenue Management

• Mongolia's tax system includes corporate taxes, personal income taxes, mineral royalties, VAT, customs duties, and stability agreements.
• The 1997 Minerals Law aimed to provide a simple and robust framework for mineral development, but regulations have not been fully implemented.
• The VAT exemption on gold sales puts Mongolian gold producers at a competitive disadvantage compared to other Asian countries.
• Stability agreements are important for investors, offering tax rate guarantees and export rights.

Legal and Regulatory Framework

• The government has transitioned from being the main owner of mines to a regulator.
• The legal and regulatory environment is generally viewed as favorable by investors, but there are concerns about implementation, corruption, and lack of transparency.
• Improvements are needed in the implementation of laws, particularly in taxation and mineral resource management.

Projected Economic Impact

• The mining sector is expected to double its output from US$96.7 million to US$189.7 million between 2002 and 2008.
• Copper exports are projected to almost triple, contributing significantly to the current account surplus.
• The sector is expected to maintain a 10% contribution to GDP over the period, with growth in the mining component of GDP ranging from 12% to 27% depending on commodity prices.

Key Recommendations

• Maintain Legal and Fiscal Stability: The government should ensure the stability of the legal and fiscal framework to support continued investment.
• Implement Enabling Regulations: Develop comprehensive regulations for the Minerals Law and improve the fiscal regime to enhance investor confidence.
• Reform Taxation System: Move away from tax holidays, reduce royalty rates for placer mining to 2.5%, and repeal the VAT exemption on gold sales.
• Enhance Institutional Capacity: Improve the implementation of laws and increase transparency within the MRAM Cadastre Office.
• Support Artisanal Mining: Carefully formulate policies and regulations for the artisanal mining sector to address its social and economic role.
• Promote International Best Practices: Enhance awareness of international best practices in the mining sector and ensure alignment with global standards.

Conclusion

The mining sector is a critical component of Mongolia's economy, with significant potential for growth and development. However, achieving this potential requires addressing institutional and policy constraints, improving the legal and fiscal framework, and ensuring sustainable management of mineral resources. The government's commitment to private sector development and reform initiatives will be key in transforming the mining sector into a robust engine of growth for the country.