From The Report: Mongolia 2014
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The mining sector is a major contributor to the local economy, accounting for 22% of GDP, 61% of industrial value-added, 94% of exports by value and 85% of foreign direct investment in 2012, according to figures from the National Statistics Office. Mongolia’s main proven reserves include coal, copper, hard-rock and placer gold, silver, iron ore, molybdenum, fluorspar, zinc, tungsten, lead, tin, uranium and rare earths. Key challenges include inadequate rail infrastructure connecting mines to target markets, a shortage of processing facilities and the fact that the majority of exported coal is semi-soft. While ebbs and flows in the regulatory framework have caused concern over the authorities’ respect for contract sanctity, in 2013 the government appeared intent on clarifying the long-term framework in an effort to restart investment. While global commodities markets are set to remain challenging in 2014, Mongolia’s strong natural fundamentals and location near major demand centres are set to continue attracting investors.
This chapter contains interviews with Jean-Sébastien Jacques, Chief Executive of Copper, Rio Tinto; Ya. Batsurri, CEO, Erdenes Tavan Tolgoi; and D. Dumba, President, Mongolian National Mining Association.