Artisanal and small scale gold mining supply chain in Mongolia is informal from extraction to its final sale to banks and ultimately to the Bank of Mongolia. In 2016, traders and miners acting as individuals sold 10,8 tons of gold to the banking system.
Although there is a formal ASM gold supply chain that already exists in Mongolia, informal gold trading is still taking place. There may be various reasons for this: due to the absence of local formal system, a remote distance of the formal supply system from rural areas and duration of the selling process in the formal chain. In addition to these issues, another reason is that miners and traders are not fully aware of the existing formal supply chain system hence continue trading within the informal market.
During the implementation of project the Responsible ASM is emerging with the certification of the ASM Community for Fairmined Eco Gold, the first in Asia to obtain such certification. Also Mongolia exports its first Fairmined certified gold by “XAMODX” ASM NGO from Bayankhongor aimag Bayan-Ovoo soum