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Development assistance in Mongolia

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Effective governance assistance in Mongolia

Effective governance assistance in Mongolia


With its wealth of natural resources, Mongolia has the potential for major economic expansion over the coming decades. However, it faces a range of challenges in harnessing this resource wealth for sustainable and equitable development. These challenges include: high levels of poverty (currently around 30 per cent); environmental degradation; and the narrowing of the country's economic base. The Mongolian Government has identified key areas of need as: improved mining-sector governance; human-resource development to provide qualified employees; and a more inclusive growth model.

Australia's support for the extractives sector in Mongolia includes a groundwater management project, a minerals sector vocational training project and additional assistance to improve the management of resources by the Government of Mongolia ($16 million).

Related initiatives

Australia-Mongolia Extractives Program

$15.6 million (total, including activities listed below), 2014–2019

The extractives sector is a focus of Australia's development cooperation with Mongolia, and the Australia-Mongolia Extractives Program (AMEP) is the main vehicle for our engagement. The program uses Australian and global expertise to support the sustainable development of Mongolia's mining sector by assisting Mongolian Government agencies to improve regulation and governance, and includes support for tertiary vocational education and training to strengthen the technical skills of young Mongolians.

AMEP is 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 the communication of key tools and products.

Phase I of AMEP is due to be completed on 31 March 2019. The managing contractor agreement for Phase II is currently being re-tendered and is due to commence on 1 April 2019.

Related documents*

Name of document Year published Type
Australia Mongolia Extractives Program Investment Design Document 2014 Design document
Australia Mongolia Extractives Program Phase II Design Document 2017 Review and design document

Mongolia Vocational Training in the Minerals Resource Sector

$5.1 million, 2014–2021

Australia contributes funding to the GIZ (German aid agency) Cooperative Vocational Training in the Mineral Resource Sector Project. The project provides institutional support to the Dalanzadgad TVET (Technical Vocational Education and Training) Centre in South Gobi (Omnogovi) province. Our investment builds on GIZ's model, piloting new approaches to improve the Centre's capacity to provide demand-driven training (based on industry needs) to the South Gobi community. This will help ensure the local community is better equipped to gain employment in the mining industry and other related industries. The investment will also provide lessons at the national level for scale-up in other areas of the country affected by mining.

Name of document Year published Type
Vocational Training in the Mineral Resource Sector: Project document 2014 Project design document
Cooperative Vocational Training in the Mineral Resource Sector 2014 Fact sheet

Related links

GIZ – Cooperative Vocational Training in the Mineral Resource Sector

Groundwater Management in Southern Mongolia

$5 million, 2012–2019

Access to large, reliable quantities of water is important for mining operations and large-scale infrastructure in mining areas such as the southern Gobi region of Mongolia.

Australia provides support to strengthen groundwater management in Mongolia's south through a partnership with the World Bank. Delivered as part of the World Bank's Mining Infrastructure Investment Support Project, the investment strengthens the capacity of Mongolian authorities to manage non-renewable groundwater resources. New institutional structures for groundwater management are being piloted in three provincial capitals and by strengthening the Mongolian Water Authority's ability to monitor groundwater.

Related documents*

Name of document Year published Type
Groundwater Management in Southern Mongolia: concept note 2011 Concept note
Groundwater Management in Southern Mongolia Quality at Entry Report 2012 Quality at entry report
Groundwater Management in Southern Mongolia Project Design Document 2012 Project design document

Related links

World Bank Mongolia – Mining Infrastructure Investment Support Project

* The Department of Foreign Affairs and Trade (DFAT) is committed to high standards of transparency and accountability in the management of the Australian aid program through publishing information on our website, including policies, plans, results, evaluations and research. Our practice is to publish documents after the partner government and any other partners directly involved in the delivery of the initiative have been consulted. Not all material published on this site is created by the Australian aid program and therefore not all documents reflect our views. In limited circumstances some information may be withheld for reasons including privacy and commercial sensitivity.

Last Updated: 12 February 2019
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