Mongolia is a country that has a rugged terrain and harsh environmental conditions. It has a series of mountain ranges, dense forests and varying climatical conditions with intense extremeties. These severe factors have made life in the country to be difficult since time immemorial. As a result, the country has a small population that is composed of nomadic communities. They live a basic life that aims at meeting the basic needs of life for survival.
However, for the last several decades, geologists have discovered that the country has a vast deposit of minerals. Due to this fact, a lot of expeditions, research and studies that have been carried out in the country. Some of the minerals that have been discovered in the country include: gold, copper and coal (Kohn 1). The discovery of these minerals has attracted the attention of individuals and bodies within and outside the country. People are now willing to invest in several sectors of the economy of the country. This has lead to the economic growth and development that is being experienced in the country.
The government of Mongolia wants to develop several sectors of its economy. Among the key areas of development that the government is focusing in is the energy sector (Jezek 11). Since the time that coal was discovered in Mongolia, the government has put a lot of effort to ensure that it develops a viable plan that will enable the country to meet its energy needs. Every sector of the economy requires energy as one of its basic needs. At the same time, coal, like other minerals is a non-renewable resource. Having this in consideration, the government of Mongolia has been working on plans that aim at ensuring the sustainable use of the resource. Their aim is to meet the energy needs of the present generation without compromising that of future generations that are to come.
That is why in the year 2001 the Mongolian cabinet approved the sustainable energy sector strategy (SESS) (MEC 1). This strategy aims at ensuring that there is wise use of coal within the country. To achieve this, the government has to ensure that there is sound management of the resource. This can be achieved through the setting of standards, targets, goals and objectives that have to be achieved within a stipulated time (Jezek 13).
To ensure that the energy initiative in the country gets public support, the government has also recognized that it is essential to meet the needs of all the stakeholders of the resource. The local community, the government, private agencies and international bodies and company form the bulk of stakeholders for this initiative. The government therefore has to come up with a means of ensuring that the needs of all these stakeholders are met. This recognition also plays a critical role in ensuring the sustainability of the energy mining investment in Mongolia.
As a result, the government of Mongolia has formed partnerships with local and international agencies to ensure that the coal mining activity is conducted in an effective and efficient way. Moreover, it has formed strong bonds with the stakeholders from the private sector. It has awarded various private companies the tenders to mine coal within the country especially in the western part of the country. Mongolia Energy Corporation (MEC) is an example of a company that has been given the mandate to mine coal. In 2006, MEC awarded Leighton Asia a 273 million dollar coal-mining contract in western Mongolia that would run for six years (MEC 1). These companies provide the skills and expertise that is required to ensure the sustainable utilization of the resource. At the same time, they ensure that the initiative is viable commercially and financially. They achieve this by setting reasonable and attainable targets, having proper policies and goals and involving all the stakeholders in the exercise either directly or indirectly. As a result, coal mining in Mongolia has been a successful project whose impact has led to massive economic growth and development.
Works Cited
Jezek, Peter. Support of the Energy Sector Master Plan for Mongolia. 2011. Web.
Kohn, Michael. Mongolia targets global mining role as investments soar. BBC Business. 2011. Web.
MEC. MEC awards Leighton Asia an AUD 273 million, 6-year contract to develop and operate the Khushuut coal mine project in western Mongolia. 2011. Web.