During October, two laboratories for testing precious metals are to be opened in an effort to increase the country’s gold reserves. According to the Central Bank of Mongolia, miners and individuals alike will be able to use the laboratories to check the purity of their gold quickly. This is expected to free up time and money for the miners.

Mongolia launched a five-month campaign in June to encourage gold miners and individuals to sell their gold to the central bank and commercial banks in order to increase the country’s gold reserves.

The Central Bank of Mongolia (Mongol Bank) said on Friday that it had purchased 12.2 tonnes of gold from legal entities and individuals in the first eight months of this year, including 2.8 tonnes in August alone. The bank is aiming to increase gold purchases to 22 tonnes in 2018 and to raise the foreign currency reserve to USD 700 million from gold purchases.

The bank’s gold purchase is high due to the decrease in taxes for the precious metal to 2.5 percent under the ‘Gold’ programme. However, low royalty taxes on gold will expire in 2019. In 2010, the bank’s gold purchase was as low as two tonnes a year due to high taxes.