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Development assistance in Mongolia

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Overview of Australia's aid program to Mongolia

Overview of Australia's aid program to Mongolia

How we are helping

2018-19 Total Australian ODA Estimated Outcome
$11.9 million

2019-20 Bilateral Budget Estimate
$5.9 million

2019-20 Total Australian ODA Estimate
$9.8 million

The mining industry drives Mongolia's economy with mineral resources and mining, including of copper, gold and coal, providing about 20 per cent of GDP and around 90 per cent of exports. A well-managed mining sector and resources sector is therefore key to realising economic growth and a reduction in poverty.

Achieving sustainable expansion of Mongolia's mining sector also depends upon developing suitable human resources in the public and private sectors. Attracting and retaining skilled workers is a top priority for businesses, but Mongolia's education system faces challenges in meeting the needs of a competitive economy.

For these reasons, the bilateral program provides assistance to two sectors–human resource development and the extractives sector. Transparent and predictable regulation will also benefit Australian business investments.

Australia has two development cooperation objectives for Mongolia:

Objective 1: Mongolia's government, civil society and private sector personnel have the skills and qualifications to deliver better services

Australia is promoting education opportunities for Mongolians by:

  • strengthening the capabilities of the Mongolian Government and the private sector by providing postgraduate scholarship opportunities in Australia
  • strengthening the technical skills of young Mongolians in construction and mechanical engineering to provide skills relevant to industry needs.

Read more about our education assistance to Mongolia

Objective 2: Mongolians are benefitting from a well-governed mining industry

The mining sector has propelled Mongolia to lower-middle income country status through the jobs and revenues that flow from large scale foreign direct investment. A well-governed, environmentally and socially responsible mining sector can reduce poverty and promote sustainable economic growth. Australia's significant expertise and experience is helping promote a more stable and equitable regulatory environment in the mining sector, encouraging new activity and helping Mongolia to benefit.

Read more about our governance assistance to Mongolia

Our results

  1. The Australia Awards Mongolia program supports approximately 62 Mongolians studying in Australia, a Women's Leadership Program, and the activities of alumni, through the Mongolia Australia Society (affectionately known as the 'Mozzies').
  2. The Australia Mongolia Extractives Program (AMEP) is helping Mongolia progress towards equitable and sustainable economic growth of its mining industry by supporting improved governance and regulation by mining-related government agencies, in areas such as geoscience, gold industry regulation, safety regulations for open pit and other mines, mineral valuation and communications.
  3. A joint initiative between Melbourne Polytechnic and Dalanzadgad technical school in the South Gobi has helped Mongolia to improve Technical and Vocational Education through new competency-based training curricula.
  4. Australian Volunteers for International Development in Mongolia are placed in sectors which align with both Australian and Mongolian Government development priorities, including human resource development, extractive industries, water and sanitation, and disaster risk reduction. Host organisations can be government agencies, local NGOs or INGOs and multilateral agencies.

Our forward program

The education and extractives sectors will continue to be the focus for Australia's assistance. Within the extractives sector our focus is improving the management and regulation of the sector through governance reforms which in turn will lead to improved conditions for business and increased investment flows.

The Mongolia program will continue to integrate Australia's aid, trade and foreign policy interests in Mongolia. Australia's strengths as a mining nation and the strong people-to-people links through our scholarships and volunteers programs will help maintain the excellent cooperative relationship that we have built with Mongolia.

Last Updated: 2 April 2019
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