Last year, the mining sector consumed 17% of Mongolia's total water, but it generated 90% of the country's water consumption fees.

Less Water, More Bills

There is a common misconception that the mining sector uses too much water among the Mongolians, but the data tells a different story. Indeed, the agriculture sector consumes the most water, accounting for 60% of total consumption, followed by the industrial sector. On the other hand, the mining sector consumed much less water (95.4 million cubic meters of water per year). However, the amount of water used in the mining sector is expected to grow from 95.4 million to 1.4 billion cubic meters in 7 years and 1.8 billion cubic meters by 2040.

Where Does the Water Bill Go?

On average, ₮47 billion is collected annually from water consumption fees over 5 years. For instance, Mongolia collected ₮51.5 billion from the water consumption fee last year. Unfortunately, this money is mostly used by the local government budget, and instead of being used for environmental rehabilitation, it is often spent on SUVs and other expenses by local government authorities. In 2021, only 21.6% of water consumption fees were spent for their intended purpose. 

• Good news, last year, authorities put tight control on spending, the amount of intended spending increased from 21.6% to 43%.

Overall, Mongolia earns a pretty big chunk of money from water consumption fees, but thanks to a lack of oversight, the money doesn't get spent where it's supposed to. It's like a leaky bucket, money goes in, but it just seeps out before it can be used for anything worthwhile. What a problem!