Legal Regulation of Cooperation Agreements Between Mining License Holders and Local Administrative Bodies in Mongolia

Abstract

The mineral resources sector is fundamental to Mongolia's economic stability; however, the extraction of these resources frequently precipitates socio-economic conflicts and environmental degradation. To mitigate these impacts, Article 42 of the Law on Minerals mandates "Local Cooperation Agreements" between mineral license holders and local administrative bodies to ensure environmental protection, infrastructure development, and job creation. This research analyzes the legal nature and practical efficacy of these instruments, utilizing a quantitative and content analysis of 362 publicly disclosed agreements from 2014 to 2025. The findings reveal a critical divergence between statutory intent and empirical implementation. The study identifies a pervasive lack of standardized nomenclature, inconsistent contractual durations, and a deficit in granular, enforceable obligations, which undermines the legal certainty of these agreements. Furthermore, the analysis suggests that these instruments operate as "administrative contracts" situated at the intersection of public and private law, yet they suffer from a lack of reciprocal accountability and an absence of technical annexes to verify performance. Many agreements were executed by officials lacking statutory competence, risking *void ab initio* status. The paper concludes that for these agreements to function as sustainable governance tools, Mongolia must institutionalize standardized contractual templates, refine the legal capacity of contracting parties, and transition toward a collaborative accountability model that integrates meaningful community oversight and rigorous monitoring mechanisms.