Large-scale mining has become the cornerstone of Mongolia’s development and poverty reduction narrative. Building on political economy insights, this paper explores the politics of artisanal and small-scale mining (ASM) in the competing context of the fast-pace development of large-scale mining in Mongolia. Questions are raised about the actors involved in promoting an ‘investment-led model’ which has privileged large-scale activities. Such context sheds light on the marginalisation of ASM activities in Mongolia, a sector which, despite being illegal until 2010, has continued to support 20 per cent of Mongolia’s rural workforce.