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A coal mine in Mongolia.

As the world searches for natural resources, focus centers on Mongolia, which is rich in silver, copper, gold, molybdenum and coal.

The economic crisis may provide an impetus for the Mongolian government to more actively invest in its mining industry. Foreign companies like Vancouver-based Entree and multinational group Rio Tinto are exploring the country’s mineral-rich regions.

Mineral development was a contentious issue in Mongolia’s recent election.

Rebecca Darling, the director of natural resources and development programs at The Asia Foundation in Mongolia, writes at the “In Asia” blog that Mongolia must substantially reform the mining industry, as years of mismanagement and poor business practices have left Mongolians wary. She provides a case study of one domestic company that has revamped its mining practices and set an example for Mongolian and international companies alike.

In Mongolia: A new mining legacy

In the northwest corner of central Mongolia’s Tov province, 80% of the land in Ugumuur town has been licensed to 18 Mongolian, Russian and Chinese miners. Activity hums dusk to dawn.

Ugumuur is a boom-town but like many towns in Mongolia, it is deeply scarred by a legacy of poor mining practices in the 1990s. Citizens have been divorced from land-use decision-making, they observe environmental damage and often imported labor crowded them out of the local mining market. These are sore points with locals, who, according to one, say that they would support mining if “we are engaged and employed, and if companies reclaim land when extraction is completed.” These concerns are voiced by communities in Khentii, Hovsgol and other provinces across Mongolia.

For mining to develop, Mongolia must shed its legacy of poor practices, and some domestic companies are helping with this. One, Monpolimet, is adopting an array of best practices that will be stoked when Australian, Canadian and other foreign firms begin operations and help reinforce positive trends in corporate social responsibility.

Monpolimet is among the top 10 Mongolian miners and has committed to engagement and social responsibility in Ugummur. The company has adopted reclamation practices that increasingly conform to best practices, including reseeding with endemic plants, and engaging citizens. The company also contributes to a community fund that supports training for student water-quality monitors.

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Photo courtesy of Flickr user Wolfiewolf under a Creative Commons license.