OBG Event

01 Mar 2012

Landmark report maps out bid to balance growth in mining with diversifying economy

Mongolia, 1st March 2012: Mongolia’s plans to drive forward its massive mining projects while also stepping up efforts to diversify its economy are given wide-ranging coverage in a landmark report just published by Oxford Business Group (OBG).

The Report: Mongolia 2012, which marks OBG’s first publication on the country’s economy, considers the reformsthat the government is introducing to prime the mining industry for major expansion. It charts the preparations that are under way to update licensing procedures while putting the spotlight on new mines as they gear up to begin production.

The publication was launched at the Blue Sky Hotel and Tower in Ulaanbaatar on March 1 which was attended by more than 250 high-profile guests, including the Prime Minister of Mongolia Sukhbaataryn Batbold who made a key-note speech at the event.

The report contains contributions from Mongolia’s President Ts. Elbegdorj and the Prime Minister, together with a detailed, sector-by-sector guide for investors. It provides a wide range of interviews with leading political, economic and business representatives, including Minister for Foreign Affairs and Trade G. Zandanshatar, the Vice-Minister of Finance and Founder of the Mongolia Economic Forum Ch. Ganhuyag, the Chairman of the Foreign Investment and Foreign Trade Agency B. Ganzorig and Executive Director of the Business Council of Mongolia Jim Dwyer.

International personalities, such as the Chancellor of Germany Angela Merkel, the Prime Minister of China Wen Jiabao and the US Vice-President Joseph R Biden also offer their views on Mongolia’s economic development.

While all eyes are on the massive mining projects at Tavan Tolgoi and Oyu Tolgoi, OBG’s 2012 report also provides analysis of the government’s efforts to diversify its economy, particularly its plans to carve out a niche as a value-added processing hub. It explores Mongolia’s progress in introducing wide-ranging reforms which are aimed at bringing overall economic stability to the country and strengthening its business-friendly climate.

OBG’s publication looks in detail at Mongolia’s bid to expand its tourism industry, particularly its efforts to bring the private sector on board as a driver of key developments in facilities, events and marketing. The Report: Mongolia 2012 also considers how the government will address some of the challenges facing the sector which include limited international connectivity and staff training.

The report provides in-depth analysis of the key role Mongolia’s agriculture sector continues to play in the country’s economy, especially the livestock segment. It also charts the country’s efforts to build on its strategic location between Russia and China as it seeks to broaden its international relations.

The Report: Mongolia 2012 has been produced in partnership with the Foreign Investment and Foreign Trade Agency (FIFTA), the Business Council of Mongolia, MICC, Ernst & Young and Hogan Lovells law firm.  

Regional Editor Paulius Kuncinas said that while investors were likely to be attracted by Mongolia’s massive projects in mining and infrastructure, it was important for the country to maintain its focus on tapping investment for the non-resource based sectors of the economy.

“In our forecast we assume that Mongolia will succeed in unlocking its mineral wealth and that the economy will experience double-digit growth every year until the end of this decade,” he said. “The main risk is that given all the attention and complexities of getting the mining sector on the road, policymakers will lose sight of other sectors. That would be a grand policy error since it would land Mongolia in the same resource trap that has plagued a number of countries.”

OBG’s Country Director Anne Delarue said strong growth forecast for the mining industry together with investment opportunities in major infrastructural developments gave weight to expectations that Mongolia would secure a place as one of the world’s fastest-growing economies. 

She also paid tribute to the Group’s partners in the country, saying their contributions had strengthened The Report: Mongolia 2012. “Oxford Business Group has long recognised the importance of teaming up with local experts for its research,” she said. “Our partners in Mongolia have a hands-on knowledge of the country’s business scene and a detailed understanding of the government’s plans for driving economic growth. Their contribution has helped us to produce a milestone report which provides investors with valuable information on the exciting opportunities that both the country’s mining industry and non-mining sectors are producing.”

The Report: Mongolia 2012 marks the culmination of more than eight months of field research by a team of analysts from OBG, assessing trends and developments across the economy, including macroeconomics, infrastructure, banking and other sectoral developments. The report is available in print or online.