As AMEP 2 approaches the end of its first year, this report informs the public of what has been achieved towards the program’s objective through the progress made on activities in the annual workplan and the way AMEP 2 is implementing those activities.  It also provides updates on resource allocation, budget expenditure, and risk management. In its first year, AMEP 2 has begun to contribute to a transparent, fair and predictable environment for domestic and international investors by:

• providing international best practice and Mongolia-specific recommendations on valuing mineral reserves to provide a fair and consistent basis for company reporting to Government and shareholders;
• developing a partnership between the Mongolian Tax Authority and the Australian Taxation Office that will help Mongolia to identify pricing practices that lead to loss of revenue for the country; and
• engaging with the Ministry of Finance over better application of the rules governing accounting in the mining sector to ensure that firms make fair provision for mine closure and rehabilitation.

AMEP 2 has contributed to clear and accepted mining regulation by bringing together a range of stakeholders to design a new regulation for mining feasibility studies to encourage more consistent quality and speedier approvals of projects. It has contributed to enhanced capacity of Government to provide services to investors by continuing the development of the successful MonGeoCat database of geological information. And it has contributed to the availability of evidence for decision-making by commissioning a report on the regulatory and institutional framework for the exploitation of coal bed methane in Australia and how it might relate to the Mongolian context.
Features of each activity have been giving Mongolian decision makers access to international best practice, and the promotion of collaboration between branches of Government and between Government, professional associations and industry.
Activities are partner-led so the AMEP 2 team has prioritized understanding the context for each activity and problems that partners are trying to tackle. The outcomes of the six activities are:

1. Mongolia adopts and starts implementation of the mineral valuation code (MONVAL) that is aligned with the international best practice making the negotiation process between government and industry smoother;
2. Revised feasibility study regulation adopted and implemented; increased efficiency in feasibility study approval process;
3. Enhanced capacity of the Mongolian Tax Authority to implement the new transfer pricing rules;
4. Completion of data entry for MonGeoCat improving the meta-data available to online users;
5. Provision of research about the regulation and development of the coalbed methane industry based on Australian experience; and
6. Guidance produced on the application of accounting standards relating to rehabilitation.

The activities represent value for money.  Each was rigorously assessed according to the criteria in the Activity Selection and Implementation Guidelines.  The Activity Partner Survey confirmed that activities are considered useful by government partners. The AMEP 2 team have found efficient ways to carry out activities and are confident that the program is effective in making progress towards the outcome and that the team’s networking efforts will enable an even greater contribution in coming years, with industry seeing the benefits.