Mining sector contribution to budget reaches MNT 2.6 trillionEconomy
Ulaanbaatar /MONTSAME/. The Ministry of Mining and Heavy Industry held today, January 21, a monthly press briefing ‘Transparent and Accountable Mining’. At the conference, Minister of Mining and Heavy Industry D.Sumiyabazar delivered a report on the statistical review of the mining sector for 2019.
By a preliminary performance of 2019, the mining industry accounts for 25 percent of the country’s GDP, 72 percent of agricultural production and 90 percent of total exports.
The report shows that the mineral industry makes up 24.5 percent of the total revenue of 2019 state budget. The budget revenue amounted to around MNT 11.9 trillion, with an increase of MNT 1.9 trillion or 18.6 since the previous year’s revenue performance.
In the state budget revenue of 2019, revenues contributed by the mineral industry equaled to MNT 2.9 trillion, which grew by 25.4 percent or MNT 590.7 billion since the previous year’s performance. The revenues from mineral industry include:
MNT 2.6 trillion from mining sector (21.96%),
MNT 232.3 billion from oil industry (1.95%),
MNT 36.9 billion as royalty payment (0.31%),
MNT 29.3 billion as other revenues (0.25%)
In 2019, a total of MNT 2,621.56 billion was paid to the state budget as mining and extractive industry’s taxes and payments, which include:
Gold MNT 116.84 billion,
Coal MNT 1,210.57 billion,
Zinc MNT 66.27 billion,
Copper MNT 1,090.12 billion,
Iron MNT 25.42 billion,
Fluorspar MNT 34.82 billion,
Other MNT 77.53 billion.
The mining sector’s revenue to the state budget rose by MNT 570.05 billion 27.8 percent compared to that of the previous annual performance report.
The report also showed that the total production of the mining and extractive sectors amounted to MNT 12.47 trillion, showing an increase of MNT 1.24 trillion or 11.1 percent since the previous year. A significant amount of increase was noticed in the coal exploration, which totaled MNT 1.15 trillion or increased by 28.6 percent in 2019. The mining industry takes up 71.8 percent of the total output volume of agricultural industry.
Last year, 50.83 million tons of coal, 1.26 million tons of copper concentrate, 16.25 tons of gold, 5.30 thousand tons of molybdenum concentrate, 156.15 thousand tons of fluorite ore, 47.49 thousand tons of fluorspar concentrate, 8.57 million tons of iron ore, 3.39 million tons of iron ore concentrate and 83.09 thousand tons of zinc concentrate were produced in the Mongolia’s mining and extractive industry.
Compared to 2018 report on the mining industry's performance, production of coal, iron ore and fluorite ore increased whereas production of copper concentrate, gold, molybdenum concentrate, iron ore concentrate, fluorspar concentrate, and zinc concentrate each declined moderately. Also, gold and fluorspar concentrate production dropped by 4.40 tons or 21.3 percent and 33.24 thousand tons or 41.2 percent respectively.
Total sales of the agricultural industry in 2019 cost MNT 20.09 trillion and grew by MNT 1.79 trillion or 9.8 percent. The sales of mining and extractive industry reached MNT 13.66 trillion, with growth of MNT 970 billion, and MNT 11.32 trillion of which (82.9 percent) are sold to foreign markets abroad, the report shows.