MONGOLIAUNIQUE POTENTIAL FOR EXPONENTIAL GROWTH                 2011
COUNTRY DATA                        Total Area :       1.56 mln sq. km                     East to West :        2,392 km ...
Undeveloped world scale deposits        Name of Deposit                    Mineral type                              Reser...
Nominal GDP, USD bln                                                                  GDP per Capita, USD30               ...
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Mongolian review 2011

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Mongolian review 2011

  1. 1. MONGOLIAUNIQUE POTENTIAL FOR EXPONENTIAL GROWTH 2011
  2. 2. COUNTRY DATA Total Area : 1.56 mln sq. km East to West : 2,392 km (1,487 miles) North to South : 1,259 km (782 miles) Capital city : Ulaanbaatar Population : 2.7 million Least densely populated : 2 individuals per sq.km Literacy rate : 97.8% GDP 2010 : USD 6.1 billion Exports: USD 2.9 billion Imports: USD 3.2 billionKEY ECONOMIC INDICATORS GDP Current price (US$ Million), Real growth (%) 2007 2008 2009 2010 6.1%6,000 Nominal GDP, USD mln 3,931 4,837 4,197 6,088 9.0%5,000 GDP Growth Rate, % 10.2 9 -1.3 6.1 -1.3% 10.2% GDP per capital, USD 1,490 1,819 1,532 1,5324,000 8.6%3,000 Inflation 15 22 4.2 4.2 USD rate 1,170 1,268 1,443 1,4432,000 Exports, USD mln 1,949 2,539 1,902 1,9021,000 Trade Balance, USD mln 114,3 -710 -228,7 -228,7 0 2006 2007 2008 2009 2010 E Total Bank Assets, USD mln 2,892 2,880 3,064 3,064Source: National Statistical Office Total Loans to GDP, % 47 44 43.8 43.8VAST UNTAPPED NATURAL RESOURCES Periodic table of the elements (Mendeleyev) Elements discovered and studied in Mongolia Elements not discovered in Mongolia 69 of the total 111 elements of the Periodic Table or 62% of the total elements are found in Mongolia.Source: Central Geological Laboratory of MongoliaPrepared by Mining Department, Golomt Bank
  3. 3. Undeveloped world scale deposits Name of Deposit Mineral type Reserve Value (USD bln) Tavan Tolgoi coking/thermal coal 6.4 bln tonnes 462 Cu, 39 mln tonnes, Oyu Tolgoi 356 Au 1816 tonnes Shivee ovoo thermal coal 5.6 bln tonnes 330 Tugalgatai thermal coal 3 bln tonnes 177 Mushgia Khudag Fe, rare earth 23.6 mln tonnes 41 Baganuur thermal coal 512.8 mln tonnes 30 Erdenet Cu, Mo 4.87 mln tonnes 37 Nariin Sukhait coking coal 210.7 mln tonnes 24 Tumurtei Fe, Zn 229.29 mln tonnes 18 Dornod U 76.11 thous. tonnes 9 TOTAL $1,484 Resource: Mineral Resources and Petroleum Authority of Mongolia, March 2008 Valuation: Golomt Bank, January 2010 Oyu Tolgoi Investment Agreement (OTIA) was signed on 6th October 2009 entailing a joint venture partnership between Ivanhoe Mines, Rio Tinto and Government of Mongolia Oyu Tolgoi is projected to have annual production of USD 5 bln over a 40 year life span Tavan Tolgoi is projected to have annual production of USD 10 bln over a 50 year life span South Gobi Sands listing in Hong Kong Stock Exchange at a > USD 450 million placement as of 29th January 2010 TRADE PARTNERS USD Share of total USD Share of total Exports million exports Imports million imports China 2466.3 84.8% Russian Federation 1 046.7 31.5% Canada 141.6 4.7% China 971.0 30.3% Russia 82.7 2.8% Japan 196.5 6.1% UK 67.4 2.3% South Korea 181.8 5.7% Italy 31.5 1.1% USA 158.9 4.9% Total Exports 2 789.5 95.9% Total Imports 2 554.9 78.5% Source: National Statistical Office, 2010 China absorbs 4/5 of exports and provides 1/2 of non-oil imports Mongolia’s growth is strongly correlated with China’s growth EXPONENTIAL GROWTH POTENTIAL Copper Exports Forecast (thousand tonnes) Coal Exports Forecast (mln tonnes)1400 50 451200 1147 40 401000 33 30 28 800 656 22 600 518 20 16 400 382 126 130 130 146 148 149 146 150 10 6 7 9 200 2 2 3 0 0 Erdenet Oyu Tolgoi Others Others Tavan Tolgoi Source: Golomt Bank Mining Department, 2009
  4. 4. Nominal GDP, USD bln GDP per Capita, USD30 10000 900025 8000 700020 600015 5000 400010 3000 5 2000 1000 0 0 03 04 05 06 07 08 09 10 11 12 13 14 15 03 04 05 06 07 08 09 10 11 12 13 14 15 Source: Mineral Resources and Petroleum Authority of Mongolia, March 2008IMMEDIATE PRIORITIES OF THE GOVERNMENT OF MONGOLIA Raise capital Conduct fiscal reforms Enhance competitiveness Strengthen corporate governance MNT Billion Percentage Investment 2007 2008 2009 2010 2007 2008 2009 2010 Total 1 252.8 1 785.1 2 146.2 3 370.7 100 100 100 100 By technological composition Construction work 389.4 586.2 418.0 350.8 31.1 32.8 19.5 10.4 Machinery, equipment 729.7 854.7 1 042.6 1 801.7 58.2 47.9 48.6 53.5 Others 133.7 344.2 685.6 1 218.2 10.7 19.3 31.9 36.1 By financial sources Domestic 778.5 950.5 843.2 1 038.5 62.1 53.2 39.3 30.8 State budget 407.7 519.3 433.9 551.5 32.5 29.1 20.2 16.4 Others 370.8 431.2 409.3 487.0 29.6 24.2 19.1 14.4 Foreign 474.3 834.6 1303.0 2 332.2 37.9 46.8 60.7 69.2 Foreign direct investment 369.8 693.5 819.3 2 133.8 29.5 38.8 38.2 63.3 Others 104.5 141.1 483.7 198.4 8.3 7.9 22.5 5.9 Source: National Statistical OfficeINVESTOR FRIENDLY ENVIRONMENT Doing Business Since our peaceful transition from a centrally planned Ease of 2012 rank out of economy to democracy, Mongolia has been creating 183 countries an investor friendly environment to encourage foreign Starting Business 97 investment. Protecting Investors 29 The laws have been updated in 1993, 1998 and in Paying Taxes 57 2003; with each revision of the laws conditions were Registering Property 26 improved reach win win situation. Getting Credit 67 Enforcing Contract 33 Doing Business, Overall 86 Source: ICF/World Bank 2012 annual report on business conditions in developing countries Tel: 976-11-321927 Fax: 976-11-321926 E-mail: info@ecrc.mn Economic Policy and Competitiveness Research Center Central Tower 1010a, Sukhbaatar Square, Ulan Bator, Mongolia WEB: WWW.ECRC.MN

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