MONGOLIA LOOKS INVITING TO INVESTORS

Urging participants at Discovery Mongolia-2010 to invest in Mongolia, Laurenz Melchers, CEO of Mongolian Star Melchers and Chairman of the Business Council of Mongolia, said, “I can tell you from my own experience that the early bird does catch the worm, and I appeal to you to be ahead in the queue.” He noted the potential for investment in all sectors of the mining supply chain in Mongolia. 

The Mongolian economy is set to grow rapidly in the coming few years. The rate until 2020 is predicted to be 14%-15% and GDP will reach the level of those of Malaysia, Indonesia and Taiwan. The Government’s projection is that in 2020, GDP per capita will be USD12,000 and the GDP itself will be USD41 billion. John Finnigan, CEO of Golomt Bank, said at the same conference, “By 2016, a turnover is expected in the mining sector. Although it sounds a very short time, if Mongolia manages to properly maximise the potential, there will be a thorough overhaul. By 2016, the annual copper output is to reach 36,000 tonnes and compared to 2005, it is a growth.” He added that Mongolia will be an example of awesome, rapid and extraordinary GDP growth, previously seen in the UAE, where it leaped from USD2.8 billion to USD230 billion or 82 times, or in Qatar, where it rose 12 times in 15 years.

A Goldman Sachs study says by 2050, there will be almost no economic growth in today’s developed countries, such as the USA, while 2/3 of the world economy will be shared by the developing countries of today. Countries which are just starting to exploit their natural resources will constitute more than half of the world economy after 40 years.
Mongolia is emerging as a main source of mineral resources and is gearing itself up to be a major  exporter to developed and industrialised countries. China’s appetite for commodities persists, and so does its urbanisation. With the country closing down 7,000 small coal mines this year, it will continue to import materials from Mongolia to meet its energy production needs. Tim Goldsmith, Partner and Global Mining Leader of PricewaterhouseCoopers, said in his presentation, “The coking coal market is moving from Australia to Mongolia” and felt it was time for international players to enter the country.

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