Mongolia
Fast Facts
| Size: |
 |
1,565,600 sq. km (slightly larger than Alaska or 3X larger than France) |
| Pop: |
2.6 million |
| Language: |
Khalka Mongol |
Main industry:
|
Mining (coal, iron ore, gold, copper, zinc, uranium); accounts for 60% of industrial output and 50% of export earnings |
Capital:
|
Ulaanbaatar (pop. 1 million) |
| Major centers: |
Darkhan, industrial center; Erdenet, a copper mining center; 40% of population live in rural areas |
| Government: |
Democratic |
A landlocked country sandwiched between Russia and China, mineral-rich but under-explored Mongolia began an exploration boom in the late 1990's following the passage of foreign-friendly mining laws in 1997. Before the boom, Mongolian exploration – largely centered on joint Soviet/Mongolian government programs – resulted in much of the country remaining under-explored.
The Minerals Law of Mongolia provides a transparent licensing system that has encouraged investment in the sector. The new legal and regulatory regime is very favorable to foreign corporations, providing equal rights to all investors, both foreign and domestic. It allows allow full foreign ownership of mineral licenses and operations, and there are no restrictions on the repatriation of dividends and profits.
This pro-investment environment complements other advantages, including:
- Local geology that is highly prospective for large size mineral deposits
- Relative under-exploration
- Government commitment to developing the mineral sector
- Lower exploration costs that Canada or Australia
- Closeness to major metal markets in China and Japan; rail links to both China and Russia
- New Tax Law improves the corporate regime, expands business deductions, allows capital depreciation, includes investment tax credits and loss carry forwards provisions
- A new Windfall Tax that levies a 68% tax on gold and copper above certain prices. This tax does not apply to uranium
- A new fiber optic cable network that extends to all provincial capitals, providing extensive Internet and cellular telephone service
For more on Mongolia visit:
Mongolia Web (www.mongolia-web.com)
Eurasia Net (www.eurasianet.org)
Parliament of Mongolia (www.parl.gov.mn) |
