section_path: Prime Minister of Mongolia/Mining
section_name: Mining
paragraph_text: Mining
  
  On 13 March 2023, the Prime Minister joined Rio Tinto CEO Jakob Stausholm 1.3 kilometres (0.81 mi) underground to celebrate the commencement of underground production at the Oyu Tolgoi copper mine in the Gobi Desert. A partnership between Rio Tinto and Mongolia, the Oyu Tolgoi open pit and concentrator have been operating since 2011. The workforce of Oyu Tolgoi is currently around 20,000 people, of which 97% are Mongolian. Oyu Tolgoi works with more than 500 national suppliers and has spent around $15 billion in Mongolia since 2010, including $4 billion of taxes, fees and other payments to the state budget. According to Rio Tinto, Oyu Tolgoi is expected to produce an average of 500,000 tons of copper per year from 2028 to 2036 from the open pit and underground, which would be enough to produce around 6 million electric vehicles per year, and an average of close to 290,000 tons over the reserve life of around 30 years.
  
  Speaking at the commencement ceremony, the Prime Minister said "I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world's key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia's 'New Recovery Policy' and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners."
  
  In December 2024, Oyun-Erdene announced a $1.6 billion uranium mining agreement with French company Orano, which was ratified by Parliament in January. Production is expected to start in 2028, with peak output projected to reach 2,600 metric tonnes of uranium by 2044.
  
  Under Prime Minister Oyun-Erdene's initiative the new Natural Wealth Fund was established in 2024. It intends to channel natural resource revenues into investments that could help Mongolia diversify away from its mining sector dependence.