In order to be designated as “EITI compliant”, countries are required to assemble both a national council and a multi-stakeholder group of members representing government, civil society and companies in Mongolia’s extraction industry.
Mongolia’s EITI National Council, chaired by the Prime Minister of Mongolia is responsible for the coordination and monitoring of the EITI. Company and professional association members are selected and dismissed by the President of the Mongolian National Mining Association.
The country’s EITI Multi-Stakeholder Working Group (MSWG) is led by the senior-advisor to the Prime Minister. The group is responsible for the oversight of EITI implementation in Mongolia and the development of the country’s EITI work plan and report. It creates EITI-related policy and recommendations for continued improvement of reporting practices. The group meets on a regular basis to discuss issues relating to the EITI including payments reported by the government and companies, the auditing process and measures to expand EITI participation among companies and civil society in Mongolia.
Within Mongolia’s EITI National Council and MSWG, there are 20 individuals representing extraction industry companies operating in Mongolia. New members are selected every three years. Iterations of the Council and Working Group have been formed in 2006, 2009 and most recently in 2012.
Companies and Professional Associations currently serving on the National Council include:
-Mongolian Coal Association
-Mongolian National Mining Association
-Energy Resource LLC
-Erdnet Mining Corporation LLC
-Mongolrostsvetmet LLC
-Mongolyn Alt Mak LLC
-Monpolimet LLC
-Oyu Tolgoi LLC
-Petrochina Dachin Tamsag LLC
-Urmun Uul LLC
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Companies and Professional Associations currently serving on the MSWG include:
-Mongolian National Mining Association
-Mongolian Geology Association
-Baganuur JSO
-Bold Tumur Yuruu Gol LLC
-Boroo Gold LLC
-Erdene Mongol LLC
-Erdes Holding LLC
-Erdenes TT JSC
-Oyu Tolgoi LLC
-PetroChina Dachin Tamsag LLC
The companies included in the National Council and MSWG are among the largest operating in Mongolia and represent interests in mineral, oil and gas extraction and exploration activities. In 2012, all were included in the 200 selected to have their reported payments reconciled with revenues reported by the government. Of them, Erdenet Mining Corporation LLC, Oyu Tolgoi LLC, Energy Resource LLC, Petro China Dachin Tamsag LLC, and Mongolyn Alk Mak LLC were the top five companies with the highest reported payments to the government. Combined together, they comprised nearly 65% of all reported payments in the reconciliation process. Expanded to the top ten companies, which represent over 80% of reported payments, seven are National Council and MSWG company representatives (top five as well as Erdenes TT JSC and Bold Tumur Yuruu Gol LLC).
Sample profiles of participating companies:
Oyu Tolgoi LLC
Since its launch in 2002, Rio Tinto has expressly supported the EITI, which aims to strengthen governance by improving transparency and accountability in the extractive sector. Oyu Tolgoi’s commitment is the latest in a series of social and environmental commitments carried forward by mine operator Rio Tinto, which is a member of the Extractive Industries Transparency Initiative, and gets an A+ Rating on the Global Reporting Initiative.
Boroo gold LLC
Centerra Gold Inc., which owns Boroo Gold, has become a Supporting Company of the Extractive Industries Transparency Initiative, an international non-profit organization launched in 2002 at the World Summit for Sustainable Development in South Africa. It is a coalition of governments, companies, civil society, investors and international organizations. Centerra has played an active role in promoting the EITI in the Mongolia. The mines operated by the company have been among the first to sign on to the initiative, provide EITI reports and help improve EITI infrastructure in their respective countries.
