Extractive Industries Transparency Initiative in

Mongolia 2011.Current and challenges

D.TserenjavPublsih What You Pay

Mongolia

-Big mining boom in Mongolia-Discovered rich coal, copper and gold sites -More and more money comes from mining

Below are milestones of Mongolian EITI October 2005Joint session of standing committees of State Great hural on budget and economy supported and instructed the Government to join Extractive Industries Transparency Initiative

January 2006The Government has approved adherence to EITI at their Cabinet meeting, and issued a resolution #1 from January 4th, 2006 meeting, and established a National Council and Working group of EITI

Februaryl 2006Parliament approved new Mineral Resource LawArticle 48.10: Not later than first quarter of ongoing year all mineral resource license holders must publisize all payments including taxes, royalties, donations to central and local budgets, also all production data for previous year.

March 2007The Government endorsed a resolution #80 pointing responsibilities of mininstries and agensies related to mining industry. Also ordered to establish EITI local branch groups in capital city and provinces (aimaks) headed by vice governers. Now we have 12 branches across the country. April 2007Memorandum of Understanding between Government, civil society and Mining companies signed. April 2007Reporting templates, and instructions for disclosure and publications of payments are approved, and have endorsed by joint order of Chairman of National Statistical office and Minister for Finance June 2009The EITI National Council approved Middle term (2010-2014) Strategy of EITI Mongolia

Final product of EITI Mongolia activity is annual report including audited data of all payments from Companies to Government (central and local). Year 2006 EITI report:64 company reported on payments 25 company reports audited by EITI secretariatGovernment reported on payments receiving from 134 companiesUnclear payments: 25 billion tugrik (about 20 million $)Aproved by EITI National Council in September 2008 Year 2007 EITI report:102 company reported on payments 38 company reports audited by EITI secretariatGovernment reported on payments receiving from 184 companiesUnclear payments: 775,1 million tugrik (about 0,5 million $)Aproved by EITI National Council in November 2009 Year 2008 EITI report:115 company reported on payments 46 company reports audited by EITI secretariatGovernment reported on payments receiving from 184 companiesUnclear payments: 420,8 million tugrik (about 0,3 million $)Aproved by EITI National Council in June 2010

Year 2009 EITI report:129 company reported on payments 129 company reports audited by EITI secretariatGovernment reported on payments receiving from 363 companiesUnclear payments: 58,1 million tugrik (about 0,04 million $)Aproved by EITI National Council in March 2011 Year 2010 EITI report:268 company reported on payments 150 company reports audited by EITI secretariatGovernment reported on payments receiving from 478 companiesUnclear payments: to be auditedTo be aproved by EITI National Council to the end of 2011

What we have? -Government basic resolutions -Implementing mechanism: 1. National Council headed Prime Minister. Held meeting twice a year. Parliament and related organisations have 4, government 4, companies 5, civil society 5 representatives. 2. Multilateral working group headed by Senior advisor to Prime Minister. Including government (8), business (7) and Civil society (9) representatives. 3.EITI Mongolai secretariatEstabllished in 2007. Prime Minister resolution #62.

Problem and Challenges: - Each year EITI reports discovered about 50 % of state budget. But still EITI Mongolia main concern of is not enough coverage of mining companies. - EITI law issue is disputed.- EITI Mongolia National council is becaming inactive after the validation- We found EITI Mongolia activity is limited and we want to extend by covering not only paymens but so mineral resource license holding, sellling, transferring, productiion, expendture for recovering. etc.