Mining

Mining is the driving force of the Mongolian economy, contributing 30% of GDP, and upcoming projects will surely increase this ratio. The two biggest are Tavan Tolgoi, a massive coal mine, and Oyu Tolgoi, a copper and gold mine, which should both be in full operation by 2013. In addition, Mongolia has potentially viable deposits of rare earth minerals, although extraction has yet to begin for these. The sector faces a number of key challenges, however, particularly with an unclear regulatory environment. The issuing of new licences has been stalled through 2012, and the government has drawn criticism for trying to renegotiate the Oyu Tolgoi contract after it had been signed. This chapter features interviews with D. Zorigt, Minister of Mineral Resources and Energy; Tom Albanese, CEO, Rio Tinto; B. Enebish, CEO, Erdenes Tavan Tolgoi; and G. Battsengel, CEO, Mongolian Mining Corporation (MMC).