Why Invest in Mongolia?
November 18, 2009 - Mongolia
If you are an investor looking for the next booming emerging economy consider Mongolia. Given recent developments in the Mongolian mining sector, some business analysts have forecasted double digit GDP growth starting in the next two years.
With other countries still recovering from the financial crisis, this could give Mongolia the fastest growth rate in the world.
The factors driving this growth rate are largely the gold, and copper deposits located in the southern regions of the country.
In October 2009, Mongolia finally signed the Oyu Tolgoi agreement authorizing Ivanhoe and Rio Tinto to begin extracting copper and gold from the largest untapped copper and gold reserve in the world. Ivanhoe estimates that this will lead to annual gross revenues in excess of US$1 billion.
The other major mining story is coal. Mongolia is estimated to have over 125 billion metric tons of coal.
With China to the south consuming well over 40% of all of the world's coal for energy production, it is likely that Mongolia will have increased investment for some time to come.
With these developments in the mining sector, Mongolia may become the Kuwait of Asia.