Gold is a metal that never loses its value at the international market. Investors keep value of their assets buying gold when the rate of foreign currencies, especially USD, at fluctuation. The Government of Mongolia approved “Gold-II” program at this moment of economic depression. It is expected to steadily increase gold extraction by 2-3 tones per year and to explore 25 tones of gold by 2020.

Gold exploring companies occupy 45 percent of the total entities operating in the mining sector. Moreover, gold industry comprises 2.6% of GDP and 9.1% of export income according to the annual report of the National Statistics Office in 2015. Representatives of gold sector held “Gold-2017” conference in meeting hall of Chinggis hotel. Over 450 delegates from international and national organizations participated in the conference initiated by the Mongolian Mining Exchange. During the conference, around 20 presentations were made by government organizations and private entities, and technology and gold projects were exhibited by 27 companies.

D.Ganbat, Head of Geology Policy Department of the Ministry of Mining and Heavy Industry, D.Baatartsogt, Chairman of National Petroleum Authority, and N.Tsogtgerel, Advisory board member of Mongolian Gold Production Association participated in the conference.

“Mongolia Gold-2017” conference duscussion was held in three main thematic areas including “Present and future of Mongolian gold sector”,“Investment and rehabilitation of gold sector” and “Technology, extraction, exploration, experience and local communities”.

Tax environment is not pleasant in Mongolia at the moment. At present, royalty fee is 2.5% and it will increase up to 5% in 2019. According to the related law, miners have to pay additional 5% of royalty fee if gold rate increases at the international market. It is certain that foreign investors are interested in the implementation date of royalty fee policy by the Government of Mongolia. Further investment in the gold sector is heavily dependent on the decision of the Government on royalty fee.

The amount of gold traded at the Bank of Mongolia drastically increased in 2014. At the end of 2016, 18.4 tones of gold that equals to USD760 million were traded at the bank.