Mongolia’s burgeoning mining sector is a cornerstone of its economy. But it comes with inherent challenges, including environmental degradation, income inequality and community displacement. Mongolia’s policymakers must navigate the trade-offs between boosting economic growth by exploiting natural resources and preserving environmental integrity.
The mining sector accounted for 28.7 per cent of Mongolia’s GDP, 92.1 per cent of exports and 31.6 per cent of fiscal revenue in 2023 — one of the highest among resource-rich countries. The sector directly employed 73,180 people in 2023 — 5.7 per cent of total employment — and an estimated 60,000 in small-scale artisanal mining, a substantial source of employment in rural areas. Mining also supports numerous indirect jobs through related industries and services.
One of the primary environmental concerns is the depletion of water reserves. This is especially salient in the South Gobi region of Mongolia, where large mines account for 78.3 per cent of regional water use in an already water-scarce area. Mining uses 15 per cent of the country’s total water, and demand is expected to rise 2.4-fold by 2040, outstripping underground water reserves.
For the rest of this article: https://eastasiaforum.org/2025/02/07/the-hidden-cost-of-mongolias-mining-boom/