In the past decade there has been a visible shift in the range of commodities sought in Mongolia, reflecting the global energy transition and greener economies. In 2012 interest was mainly focused on coking and thermal coal, iron ore, gold and copper. However, in recent years there has been a noticeable increase in exploration activity for lithium, cobalt, nickel, Rare Earth Elements (REE) and uranium. Also, the demand for high purity silica is driving attention to industrial minerals previously unseen in Mongolia.
In 2024, gold and copper continued to be the commodities where there was the most activity, and it is anticipated that this trend will continue or increase. Gold remains an attractive commodity for investors for several reasons such as its use for jewellery, bullion, gold coins, finance, its use in an expanding electronics industry and its position as an important financial investment strategy (hedging against economic and/or geopolitical factors). Copper’s position as an essential element in electromobility, the potential demand/supply imbalance being forecast and the understanding that Mongolia could be a more significant supplier of copper are all likely contributing to copper exploration activity being maintained.
For these commodities, exploration is focused on epithermal, orogenic and porphyry systems in underexplored regions of Mongolia. Mongolia is benefitting from the adoption of advanced exploration targeting techniques combining geochemistry, geophysics, satellite image interpretation, SWIR scans and up to date geotectonic interpretations.
Several junior companies have started prospecting for lithium pegmatites, greisens and clay-hosted lithium. The focus is on areas with post-orgenic granite intrusions with greisen cupolas, veins and pegmatite dykes. These occur predominantly in the Central and Khentii provinces. Some activity in the middle, south and east Gobi targets clay-hosted mineralisation.
Several companies are currently targeting hydrothermal and in-situ leach sandstone hosted uranium mineralisation. The most advanced is the Orano project, located in the south Gobi province, which is in development/construction stage.
Exploration for REE mineralisation has been focused on alkalic granites located in west Mongolia and south Gobi area. An important aspect of REE exploration is the early testing and studies on metallurgy amenability for REE recovery.
Aligned with a returning interest and investment in exploration activity, the Mongolian government is also encouraging project owners to process minerals in Mongolia and seeking higher added value of products. This will require a significant injection of capital investment, primarily international. To attract this level of capital investment will require Mongolia to become recognised as an investment destination that is supported by a business environment underpinned by not only a sound regulatory framework but working processes reflecting transparency, integrity and good governance.
Interestingly, in central Europe, a more mature mining jurisdiction, there has also been renewed interest and activity in prospecting, including revisiting historical mines for many of the same ‘energy transition’ minerals such as copper, cobalt, lithium and manganese.
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This thought leadership piece is in partnership with the Mining Journal's Future of Exploration.
