Mongolia is a landlocked country located in East Central Asia. It is bordered by Russia in the north and China to the east, south and west. The Gobi Desert covers 33% of the land. Mongolia is thriving democracy with over 30 political parties and elected government.
Recently, much attention has been paid to the vast potential for development in the resource sector. The country's richest resources are minerals. Coal, copper, fluorite, gold, iron ore, lead, molybdenum, oil, phosphates, tin, uranium, and wolfram are known to be abundant across the land.
During Mongolia’s communist days, joint geological prospecting teams located more than 500 mineral deposits in Mongolia. However, due to under developed infrastructure, estimates suggest that only 15% of the country has been mapped. The surface has barely been scratched and the potential fully comprehended. Mongolia may just be the greatest untapped resource on the globe.
According to the Mongolian Mining Ministry (2007), mining accounts for 70% of industrial output and contributes to 80% of exports. According to World Bank figures in 2006, mining makes up 17% of GDP.
Already making a substantial contribution to the economy, the mining sector has exponential room for growth. Industry accounts for 21.4% of GDP, and mining continues to rise as a major focus of Mongolia. To date the majority of Mongolia’s vast resources remain un-tapped, un-marketed and under exploited. Much of the country’s reserves have yet to be explored.
Mongolia is a mining friendly country with existing mining laws which allow co-production and joint venture for mining projects. The government revised its mining laws in 2006 to create further transparency for foreign investors.
An undisputable gateway to other Asian and European economies, Mongolia has strong and existing trade links with the region. Increasing metal prices along with the soaring demand for iron ore and other metals from China ensure that the future of mining and investment in the country will be substantial. |
