Jeffrey A. Newman
Mongolia, which borders China, is one of the world’s most promising countries for rare earth elements (REEs), with estimated reserves ranging from 21 million to 31 million tons, potentially making it second only to China in terms of total reserves. These resources are distributed across multiple deposits, particularly in the Gobi Desert and western regions.
- Mongolia’s deposits are particularly rich in light rare earths, including:
- Neodymium (Nd)
- Praseodymium (Pr)
- Lanthanum (La)
- Cerium (Ce)
- Samarium (Sm)
- These are essential for manufacturing high-strength magnets used in electric vehicles, wind turbines, and electronics
- The main ore minerals hosting REEs in Mongolia include:
- Bastnäsite: A fluorocarbonate mineral rich in LREEs, especially neodymium and praseodymium36.
- Monazite: A phosphate mineral containing LREEs, with variants like monazite-Ce and monazite-La36.
- Apatite: Can be enriched in REEs, sometimes as a result of hydrothermal processes36.
- Britholite, Parisite, Synchysite: Other minerals identified in some deposits, though less common3.
- Xenotime: Contains mostly HREEs and yttrium, but is of minor economic importance in Mongolia at present
Mongolia is moving to reduce its economic dependence on China and Russia by developing its rare earth element (REE) industry through strategic partnerships with Western countries and regional allies. The government is actively seeking to mine, refine, and export REEs with the help of partners such as the United States, United Kingdom, Japan, and South Korea. For example, Mongolia has recently signed a Memorandum of Understanding with Japan’s JOGMEC to advance the Khalzan Buregtei rare earth project, aiming to attract investment and technical expertise, and to produce value-added mixed rare earth oxides for export.
Most promising REE deposits are in remote areas. This presents infrastructure and logistical hurdles. Mongolia recognizes the need for substantial investment in infrastructure, advanced geological surveys, and specialist skills to make these projects viable and attractive to international investors38. The government is also working to address concerns over environmental impacts and local community anxieties, particularly regarding radiation and land use. However, there may be opportunities for larger U.S. businesses to spearhead and underwrite infrastructure and logistics.
There is a strong focus on developing a competitive, environmentally sustainable, and export-oriented mining industry. Mongolia aims to ensure that rare earth development provides sustainable livelihoods for locals and supports the global transition to clean energy, while also diversifying its economy away from coal exports. Mongolia’s leaders have expressed an interest in selling the minerals to the U.S. and other nations including Great Britain.
Jeff Newman JD MBA, represents whistleblowers in tariff fraud cases concerning imported Chinese goods as well as Medicare and Medicaid fraud cases under the False Claims Act (Qui Tam), and SEC, IRS and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
