Эрдсийг эрдэнэст
Ирээдүйг өндөр хөгжилд
Ирээдүйг өндөр хөгжилд
Mining The Resources
Minding the future
Minding the future
A. Khaliun
Rare earth elements are essential for R producing magnets used in wind turbines and electric motors, making them a cornerstone of high-tech renewable energy systems.
As the energy transition accelerates, demand for critical minerals continues to grow. It's no secret that minerals like lithium, nickel, cobalt, manganese, and graphite are playing a pivotal role in the battery industry revolution.
Driven by the rise in clean energy consumption, demand for critical minerals surged in 2023. Lithium consumption alone grew by 30%. while demand for nickel, cobalt, graphite, and rare earth elements increased by 8-15%. The total global market value of key minerals for the energy transition reached approximately $325 billion in 2023 on par with the value of the global iron ore market.
If countries worldwide fully implement their climate change commitments, demand for minerals used in clean energy technologies is projected to double by 2030 and treble by 2040, reaching nearly 35 million tons per year, according to a 2024 report by the International Energy Agency (IEA).
The world's leading developed countries began recognizing the importance of critical minerals and their role in industrial development during the 1980s. Between 1985 and 1995, countries such as the United States, Japan, and Canada not only acknowledged the significance of these minerals but also started incorporating them into their production processes.
The Mongolian Critical Minerals Association was established in 2022, marking the start of professional discussions on global trends and the policy directions Mongolia should pursue. Since 2024, knowledge and understanding of critical minerals at the government and decision-making levels have steadily improved. Previously, in Mongolia, which had a relatively underdeveloped industrial sector, raw materials like gasoline and diesel fuel-whose reserves faced potential disruption were considered 'critical"
The lists of critical minerals developed by countries vary widely based on their unique needs and resources. However, among highly industrialized nations, the list of critical minerals essential for high-tech industries-such as mobile phones, electric vehicles, and aircraft manufacturing-is generally consistent. Minerals commonly included on any country's critical minerals list are rare earth elements, platinum, tungsten, lithium, and cobalt.
As explained by M. Dagva, head of the Mongolian Critical Minerals Association and lecturer at the Mongolian University of Science and Technology:
"In 2024, the Mongolian Critical Minerals Association submitted a proposal to the Ministry of Industry and Mineral Resources recommending the inclusion of 11 elements on Mongolia's list of critical minerals. The ministry subsequently forwarded this proposal to the government; however, an official list has yet to be approved. This delay may be partly due to geopolitical challenges Mongolia faces as a small country situated between two superpowers. Nonetheless, recognizing the potential of critical minerals, the government took a positive step by renaming the former 'Mongolrostsvetmet corporation to Erdenes Critical Minerals' LLC."
The association's recommended list of 11 critical minerals includes:
The top three minerals on this list-copper, fluorspar, and graphite-also appear on the critical minerals lists of both the United States and the European Union. It is worth noting, however, that the United States has recently added copper to its list.
M. Dagva further pointed out: "Rare earth elements consist of 17 types of minerals, and unlike oil, they are not concentrated in a single location or country. Historically, securing oil supplies often involved trade agreements with a few key countries, such as Russia or those in the Middle East, which effectively resolved supply issues. However, the situation with critical minerals is far more complex, requiring direct engagement with multiple countries where these resources are found. For example, copper is primarily sourced from Chile, nickel from Indonesia, and about 70% of the world's cobalt supply comes from Africa.
Even after mineral deposits are discovered, they cannot be mined and used directly they must first be processed and transformed into final products. China currently leads the world in rare earth element processing: however, its own reserves of raw materials remain uncertain.
To address this strategic weakness, China has spent the past decade actively acquiring critical mineral deposits and the companies that own them worldwide. In response, Canada enacted legislation prohibiting Chinese state-owned enterprises from purchasing mineral assets listed on the Toronto Stock Exchange.
As a result, countries have become increasingly interdependent. Behind this trend lies a struggle for dominance in the rare earth element sector, prompting nations to update their resource and supply policies. Geopolitical interests and confrontations are also unfolding in this context."
The supply and management of critical mineral resources has become a key topic of discussion among world leaders. This global focus is also reflected in high-level government meetings in Mongolia. For instance, during a visit to Ulaanbaatar in the summer of 2024, French President Emmanuel Macron-leader of one of the five permanent members of the UN Security Council-met with Mongolia's Head of State, with the uranium project being the central topic of discussion.
France had previously included uranium on its list of critical minerals. However, following a revision announced on April 25, France expanded the list by adding 50 minerals but removed uranium, reclassifying it instead as a fuel mineral.
Developed countries are conducting detailed assessments of their mineral resources- evaluating their location and quantity-and are imposing export bans on certain minerals.
AN EXPLORATION IS UNDERWAY ACROSS THE ENTIRE UMNUGOBI AIMAG
Detailed research on critical minerals in Mongolia remains limited. Most available information dates back to studies conducted by Soviet experts. Between the 1960s and 1980s, Russian geologists focused primarily on minerals of interest to them, leaving a significant gap in data related to many critical minerals.
Industry experts have emphasized the urgent need for expanded exploration, a concem that has also been acknowledged by the relevant ministry and its minister.
Countries such as Canada and Australia conduct comprehensive geological and exploration studies across their territories. In contrast, Mongolia's exploration efforts have lagged behind extraction activities. To address this gap, the state allocated $10 million in the 2023 budget for exploration. With this funding, studies are currently underway throughout the entire territory of Umnugobi aimag. Additionally, the 2025 budget includes $3-4 million for continued exploration, and a tender has been announced to select a contractor.
Rare earth elements have been discovered at numerous locations across Mongolia, but currently only six deposits are officially registered, according to the National Geological Survey: Khalzanburegtei (Myangad soum, Khovd aimag), Mushgia Khudag and Khotgor (both in Tsogt-Ovoo soum, Umnugobi aimag). Ulaan Del (Zavkhan soum, Uvs aimag), Lugiin Gol (Khatanbulag soum, Dornogobi aimag). and Tsagaan Chuluut (Binder and Umnudelger soums, Khentii aimag).