Mongolia

With the economy growing 17.3% in 2011, the numbers show a broad-based expansion, but ultimately the mining sector was and will continue to be Mongolia’s main GDP driver. The country is on the verge of breaking through as the next major resources economy, and is perfectly situated just to the north of perhaps the world’s most resource-hungry economy...

Just 22 years after embracing the market economy Mongolia has been going through another cycle of economic and political headwinds, although the country’s fundamental macroeconomic indicators appear to be more solid this time round.

The ongoing search for fuel alternatives in Mongolia was stepped up after a shortage in the summer of 2011, and energy sector leaders are now exploring alternatives and supplements to buying from Russian state energy firm Rosneft. One possibility is coal-to-liquids (CTL) technology, a good fit given the country’s huge coal reserves. Several...

While insurance in Mongolia remains in its nascent stages, important ongoing reforms may yet drive penetration, build local underwriting capacity and develop the first pool of domestic non-bank institutional investors. Admittedly, with total premiums as a share of GDP at a mere 0.44%, or $29.3m, in the first half of 2012, according to the Mongolian...

A legacy of privatisation, Mongolia’s securities law continues to hamper the development of the world’s second-smallest bourse. While new legislation has been drafted with support from an international working group that included the London Stock Exchange Group (LSEG) and presented to parliament, its passage remained delayed in 2012. Although...

Looming on the long-term horizon is a major constraint for the mining sector: water. Though Mongolia’s mineral resources are scattered throughout the country, most of the ones now in development are in the Gobi Desert, the driest part of the country. That includes Oyu Tolgoi (OT) and Tavan Tolgoi (TT), the megaprojects that will in the near future...