Miners secure more seats in the Parliamentary

2020  |  July - August   |  029


The ruling party MPP maintained its majority by obtaining 62 seats at the Parliament through the recent election, making it clear that the policy of U.Khurelsukh-led Cabinet that spanned the past three years would be continuing. U.Khurelsukh was elected as Prime Minister for the second term and the Cabinet barely made any changes to its composition. The Prime Minister explains this as a way to preserve the continuity of state policies. 

As a result of the eight Parliamentary elections, eight representatives from the mining sector were elected into office. Despite mining being the main engine of the country’s economy, the sector’s policies and legal environment have been defined and formulated by populists throughout time. It has become a practice that major issues surrounding the sector including the future of Oyu Tolgoi project, Erdenes Tavan Tolgoi’s IPO, Erdenet’s disputes, and the issue of new projects like Gatsuurt and Tsagaan Suvarga have been decided by the screams of populist politicians rather than the voices of the industry’s Ministry of sectoral experts.  

There is no doubt the following MPs would contribute their voices to developing responsible mining and providing a sound legal environment. 

The previous Parliament has a history of establishing a lobby group that supports responsible mining. Among its members, G.Temuulen and J.Bat-Erdene have been reelected into Parliament. 

MCS Mongolia LLC, 
Intergroup International LLC 
   MP L.Enkh-Amgalan, known for his affiliation with MCS Group, has been reelected into Parliament for the third time. He is one of the shareholders of MCS Group who owns majority stakes at Energy Resources. Energy Resources runs the operation at Ukhaa Khudag’s coking coal mine and is the largest exporter of washed coking coal in the country. However, MCS Group’s subsidiaries are working as independent and subcontractors in Oyu Tolgoi’s underground mine, power lines, and renewable energy projects.
   As for MP L.Enkh-Amgalan, he changed the law that limited foreign investments and was actively engaged in several laws that support the economy and businesses including the Law on Securities Market. He is also one of the few active members who call for upgrading the legal environment for the economy. 
“Dorniin Gobi” LLC 
“Montai Erdene” LLC

   Widely known as the owner of Boldtumur Eroo Gol LLC that runs the operation at Bayangol’s iron ore mine in Selenge province. It is also the largest iron ore exporter of Mongolia. By 2019, the company made up 43 percent of all iron ore exports. 
   As for MP B.Delgersaikhan, it is his second term in Parliament. He showed amply the benefits of having mining representatives in Parliament for the past 4 years. In addition to knowing well how important it is to provide mining products to end-users in the shortest and cheapest route as possible, he is actively engaging in the development of Khang-Mandal port and the construction of Zuunbayan-Khangi railroad. He is also credited for Boldtumur Eroo Gol’s experience of single-handedly constructing Bayangol’s railroad.   


“Ajnai Corporation” LLC, 
“Тavan Tolgoi” JSC, 
Mongolia Energy Corporation, 
Мongolian Mining Corporation

   Again, the MP was re-elected for the third time. He occupied the seat in 2004-2008 and 2012-2016 previously. Despite not much being known about his efforts in lawmaking, he is certainly one of the big sharks of the mining industry.
   One of the first companies that exported coal to China was Tavan Tolgoi JSC. As the owner of 34 shares of the company, Tavan Tolgoi Trans LLC that carries out coal export shipments from Tavan Tolgoi mine is owned by him as well. In addition, he holds shares in Mongolian export coal companies registered at the Hong Kong stock exchange.  


“Aspire Mining Limited” LLC, 
“Gem International” LLC, 
“Gem Group” LLC, 
“Gardi Management” LLC

   Elected for the first time, MP Ts.Tserenpuntsag is the main shareholder of Aspire Mining Limited LLC. Starting his businesses in the liquid foods industry, he established the fourth telecommunications company in Mongolia and announced his irrevocable move towards the mining sector last year. He gradually bought small shares at Aspire Mining Limited until he owned 52 percent of the company which led to him leading the company’s management. 
   When Mongolia’s mining sector was a “celebrity” 10 years ago, many small foreign companies carried out explorations in Mongolia. One of the best projects among them is Ovoot’s coal mine project which is finally getting national management as such. Aspire Mining Limited is spending considerable time to resolve its infrastructure issues for carrying out shipments from Ovoot mine in Khuvsgul province. 


“Oyunii Undraa Group” LLC

   From Governor and Mayor of Ulaanbaatar to Parliament member. His 2018 income statement shows that he’s a 24 percent shareholder of Oyunii Undraa Group LLC which owns CC Mongolia, one of the country’s largest rare earth metals companies.  
   MP S.Amarsaikhan’s brother Ganbat Sainbuyan acts as CEO of CC Mongolia. The company started operations in 2000 and commissioned Khovd River wolfram underground mine in 2013. It now makes up 80 percent of all wolfram exports of Mongolia alone. In addition, the company’s website states that it owns one of the few lithium deposits – Arbayan lithium-wolfram deposit, Khairkhan Tolgoi coking coal deposit, and Tugrug Lake brown coal deposit. These facts certainly make S.Amarsaikhan a mining representative.  


“Khungunbeton” JSC, 
“Diesel Trans” LLC, 
“Maltix” LLC

   According to her official income statement, Ch.Undram owns shares in Khungunbeton JSC, Diesel Trans LLC, and Maltix LLC. The public does not know much about this newcomer to politics who was just elected as MP from Selenge province, winning over DP leaders including D.Erdenebat and S.Bayartsogt.  
She is the daughter of Chinbat, CEO of Usukh Zoos LLC which became one of the leaders in coal exports in recent years, and worked as a consultant in the company. Usukh Zoos LLC has been conducting explorations for the Khuren Shand project since 2009 and operating the project since 2014. It also commissioned a coal washing plant as well as a copper concentrator at Bayankhongor province, making it one of the fastest expanding companies in the mining sector.

“Hera Holding” LLC, 
“Hera Energy” LLC, 
“Mine Tech” TVET

Kh.Gankhuyag, the founder of Hera Holding LLC that has been operating steadily for many years in the field of mining procurement, is elected for the first time. The company supplies equipment to the mining, road and construction sectors, and provides maintenance services. In addition to being an official distributor of leading global companies including Hyundai and Cummins, the company cooperates with major mining companies. 

“Top Mining Solutions” LLC, 
“Vertex Mining Partner” LLC, 
“Hera Investment” LLC 

G.Damdinnyam is the first-time elect from Darkhan-Uul province and one of the best new-generation researchers of the mining sector. He completed his Master’s from the Canada’s University of British Columbia and is currently pursuing a Ph.D. Previous work experience include CEO of Procon Mining Mongolia which was established by Hera-Investment LLC jointly with Canada’s Procon Holdings Inc. He currently holds a 10 percent share of Hera Investment LLC. 

In addition to the aforementioned MPs, several people who own shares in companies that implement exploration projects and supply to major companies in the mining sector have been elected.  

Two members who were elected from the provincial Governor’s office in this year’s Parliamentary election are D.Batlut and N.Naranbaatar who both worked as Governors for the country’s two wealthiest provinces Orkhon and Umnugobi. Rather than taking money from the state budget, these two provinces have long been the main contributors to revenue. D.Batlut, Governor of Orkhon province where Erdenet mine has been the breadwinner for 40 years, and N.Naranbaatar, Governor of Umnugobi province where mining has rapidly developed in the past decade, would no doubt provide a strong voice for arranging a mutually beneficial relationship between mining companies and the local community – the biggest challenge for establishing responsible mining in Mongolia.  








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