Mining in Mongolia

Mongolia is one of the few remaining mining frontiers which has vast tracts of the country still unexplored. According to ResCap, there are over 6,000 deposits with 80 different minerals discovered to date in Mongolia.  Mongolia’s natural resources sector is set for explosive growth over the coming years and is expected to transform the Mongolian economy.

In October 2009 the Mongolian Government and Ivanhoe Mines/Rio Tinto signed a joint venture agreement to develop the Oyu Tolgoi copper mine.  The Oyu Tolgoi project is expected to require over US$ 6 billion in investment over the next nine years with US$ 758 million allocated in 2010.

The Government announced in June 2009 its intention to privatize more than 10 major state-owned mining companies over the next four years.  In July 2010, the government issued an announcement indicating the preliminary structure for the privatization of Tavan Tolgoi, Mongolia’s largest coal deposit (nearly 7 billion tons).  The Government has recently announced plans for an international listing of Tavan Tolgoi; this is expected to take place in Hong Kong in 2012.

APIP is poised to capitalize on the opportunities in the mining sector through its subsidiaries Belgravia Mining, Topazstone, and Jinst Metals.