Economic Policy Reform and Competitiveness Project

On 24 November the Corporate Governance Development Center (CGDC) and the Mongolian National Mining Association (MNMA) signed a Memorandum of Understanding (MoU) to help MNMA member mining companies address corporate governance issues through training programs targeting directors and corporate executives. Main commitments and rights of MNMA include:

• - Promotion and divulgation of the concept and principles of corporate governance among its members
• - Encourage and support its member companies to become members of CGDC
• - The right to represent the industry in events related to corporate governance
• - Negotiation of fees for trainings, seminars, and other events of CGDC.

CGDC, on the other hand, commits to the following:

• - Conduct high-quality corporate governance trainings to shareholders, board members and executives of MNMA member organizations
• - Develop and provide customized trainings for MNMA and its members
• - Invite international experts at the request of MNMA to promote corporate governance awareness
• - Invite MNMA members to international corporate governance conferences
• - Inform MNMA regarding CGDC trainings, research, and advocacy events.

MNMA has fifty-seven private and public sector members, including state-owned enterprises (SOEs), such as Erdenet Mining, MongolRosTsevMet, and international mining companies, such as Ivanhoe Mines Mongolia and Boroo Gold. Member companies participate in exploration or mining services related to iron, gold, copper, coal, uranium, and fluorspar while other member firms offer other mine-related services.

Founded in April 2009 under auspices of the Financial Regulatory Commission (FRC) and the Institute of Finance and Economics (IFE), with support from EPRC/USAID, CGDC is a membership-based NGO promoting good corporate governance knowledge, skills, and practices for directors and executives and advocacy of good corporate governance in Mongolia.

The MoU has the potential to offer a useful initial platform for collaboration between MNMA and CGDC to encourage the mining industry to adhere to corporate governance principles and promote fairness, accountability, transparency and responsibility, setting an example for other sectors in Mongolia.