2. COUNTRY DATA
Total Area : 1.56 mln sq. km
East to West : 2,392 km (1,487 miles)
North to South : 1,259 km (782 miles)
Capital city : Ulaanbaatar
Population : 2.7 million
Least densely populated : 2 individuals per sq.km
Literacy rate : 97.8%
GDP 2010 : USD 6.1 billion
Exports: USD 2.9 billion
Imports: USD 3.2 billion
KEY ECONOMIC INDICATORS
GDP Current price (US$ Million), Real growth (%)
2007 2008 2009 2010
6.1%
6,000 Nominal GDP, USD mln 3,931 4,837 4,197 6,088
9.0%
5,000 GDP Growth Rate, % 10.2 9 -1.3 6.1
-1.3%
10.2% GDP per capital, USD 1,490 1,819 1,532 1,532
4,000
8.6%
3,000 Inflation 15 22 4.2 4.2
USD rate 1,170 1,268 1,443 1,443
2,000
Exports, USD mln 1,949 2,539 1,902 1,902
1,000
Trade Balance, USD mln 114,3 -710 -228,7 -228,7
0
2006 2007 2008 2009 2010 E Total Bank Assets, USD mln 2,892 2,880 3,064 3,064
Source: National Statistical Office Total Loans to GDP, % 47 44 43.8 43.8
VAST UNTAPPED NATURAL RESOURCES
Periodic table of the elements (Mendeleyev)
Elements discovered and studied in Mongolia
Elements not discovered in Mongolia
69 of the total 111 elements of the Periodic Table or 62% of the total elements are found in Mongolia.
Source: Central Geological Laboratory of Mongolia
Prepared by Mining Department, Golomt Bank
3. Undeveloped world scale deposits
Name of Deposit Mineral type Reserve Value (USD bln)
Tavan Tolgoi coking/thermal coal 6.4 bln tonnes 462
Cu, 39 mln tonnes,
Oyu Tolgoi 356
Au 1816 tonnes
Shivee ovoo thermal coal 5.6 bln tonnes 330
Tugalgatai thermal coal 3 bln tonnes 177
Mushgia Khudag Fe, rare earth 23.6 mln tonnes 41
Baganuur thermal coal 512.8 mln tonnes 30
Erdenet Cu, Mo 4.87 mln tonnes 37
Nariin Sukhait coking coal 210.7 mln tonnes 24
Tumurtei Fe, Zn 229.29 mln tonnes 18
Dornod U 76.11 thous. tonnes 9
TOTAL $1,484
Resource: Mineral Resources and Petroleum Authority of Mongolia, March 2008
Valuation: Golomt Bank, January 2010
Oyu Tolgoi Investment Agreement (OTIA) was signed on 6th October 2009 entailing a joint venture partnership
between Ivanhoe Mines, Rio Tinto and Government of Mongolia
Oyu Tolgoi is projected to have annual production of USD 5 bln over a 40 year life span
Tavan Tolgoi is projected to have annual production of USD 10 bln over a 50 year life span
South Gobi Sands listing in Hong Kong Stock Exchange at a > USD 450 million placement as of 29th January 2010
TRADE PARTNERS
USD Share of total USD Share of total
Exports million exports Imports million imports
China 2466.3 84.8% Russian Federation 1 046.7 31.5%
Canada 141.6 4.7% China 971.0 30.3%
Russia 82.7 2.8% Japan 196.5 6.1%
UK 67.4 2.3% South Korea 181.8 5.7%
Italy 31.5 1.1% USA 158.9 4.9%
Total Exports 2 789.5 95.9% Total Imports 2 554.9 78.5%
Source: National Statistical Office, 2010
China absorbs 4/5 of exports and provides 1/2 of non-oil imports
Mongolia’s growth is strongly correlated with China’s growth
EXPONENTIAL GROWTH POTENTIAL
Copper Exports Forecast (thousand tonnes) Coal Exports Forecast (mln tonnes)
1400 50 45
1200 1147 40
40
1000 33
30 28
800 656 22
600 518
20 16
400 382
126 130 130 146 148 149 146 150 10 6 7 9
200 2 2 3
0 0
Erdenet Oyu Tolgoi Others Others Tavan Tolgoi
Source: Golomt Bank Mining Department, 2009
4. Nominal GDP, USD bln GDP per Capita, USD
30 10000
9000
25 8000
7000
20
6000
15 5000
4000
10
3000
5 2000
1000
0 0
03 04 05 06 07 08 09 10 11 12 13 14 15 03 04 05 06 07 08 09 10 11 12 13 14 15
Source: Mineral Resources and Petroleum Authority of Mongolia, March 2008
IMMEDIATE PRIORITIES OF THE GOVERNMENT OF MONGOLIA
Raise capital
Conduct fiscal reforms
Enhance competitiveness
Strengthen corporate governance
MNT Billion Percentage
Investment
2007 2008 2009 2010 2007 2008 2009 2010
Total 1 252.8 1 785.1 2 146.2 3 370.7 100 100 100 100
By technological composition
Construction work 389.4 586.2 418.0 350.8 31.1 32.8 19.5 10.4
Machinery, equipment 729.7 854.7 1 042.6 1 801.7 58.2 47.9 48.6 53.5
Others 133.7 344.2 685.6 1 218.2 10.7 19.3 31.9 36.1
By financial sources
Domestic 778.5 950.5 843.2 1 038.5 62.1 53.2 39.3 30.8
State budget 407.7 519.3 433.9 551.5 32.5 29.1 20.2 16.4
Others 370.8 431.2 409.3 487.0 29.6 24.2 19.1 14.4
Foreign 474.3 834.6 1303.0 2 332.2 37.9 46.8 60.7 69.2
Foreign direct investment 369.8 693.5 819.3 2 133.8 29.5 38.8 38.2 63.3
Others 104.5 141.1 483.7 198.4 8.3 7.9 22.5 5.9
Source: National Statistical Office
INVESTOR FRIENDLY ENVIRONMENT
Doing Business
Since our peaceful transition from a centrally planned Ease of 2012 rank out of
economy to democracy, Mongolia has been creating 183 countries
an investor friendly environment to encourage foreign Starting Business 97
investment. Protecting Investors 29
The laws have been updated in 1993, 1998 and in Paying Taxes 57
2003; with each revision of the laws conditions were Registering Property 26
improved reach win win situation. Getting Credit 67
Enforcing Contract 33
Doing Business, Overall 86
Source: ICF/World Bank 2012 annual report on business conditions in
developing countries
Tel: 976-11-321927
Fax: 976-11-321926
E-mail: info@ecrc.mn
Economic Policy and Competitiveness Research Center
Central Tower 1010a, Sukhbaatar Square, Ulan Bator, Mongolia
WEB: WWW.ECRC.MN
