The document discusses foreign direct investment opportunities in Mongolia and Tuv province. It summarizes Mongolia's economic growth and increasing foreign investment. The top priority economic sectors for investment are identified as mining and mineral resources, food and agriculture, tourism, and infrastructure projects. Specific mining and strategic resource deposits in Mongolia are outlined. Priority investment projects in Mongolia total over $12 billion with the largest projects in mining, energy, and heavy industry. Tuv province presents opportunities in infrastructure, tourism, agriculture, and mining.

1. TUV PROVINCE INVESTORS FORUM 2011
FOREIGN DIRECT INVESTMENT FRAMEWORK OF
MONGOLIA AND TOV PROVINCE
2011.10.20 Mr . Ochirkhuyag G.
Vice-Chairman
Foreign Investment and Foreign Trade Agency
Government of Mongolia

2. Content
• Economic prospects and current
development of Foreign Direct Investment
(FDI) in Mongolia
• Mongolian priority economic sectors
• Mining and mineral resources
• Food, agriculture and light industry
• Tourism
• Top priority investment projects
 Tuv province’s some prospects

3. Shibu lijack
Economic prospects and
current development
of FDI in Mongolia

4. 3.7
4.5
6.0 6.0
8.2
0
1
2
3
4
5
6
7
8
9
2006 2007 2008 2009 2010
(National Statistical Office, 2011)
GDP growth in 2010 is
6.1% reaching 8.25 trillion
MNT (6.6B USD) at
current prices.
GDP growth was mainly
due to 23.4% increase in
services and trade, 11.3%
increase in processing
industry and 6.3% in
mining.
Gross Domestic Product /trillion MNT/

5. Export and Imports /billion USD/
 Total trade
turnover increased
by 2.15 billion
USD or
53.5%, total export
increased by
1.013 billion or
53.8% and total
import increased
by 1.14 billion
USD or 53.3%.
2.97
4.00
5.77
4.02
6.17
1.54
1.94
2.53
1.88
2.89
1.43
2.06
3.24
2.13
3.27
0
1
2
3
4
5
6
7
2006 2007 2008 2009 2010
Total turnover Export Import
(National Statistical Office, 2011)

6. Foreign Direct Investment 2010
366.50
499.90
708.90
801.10
1,025.90
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
2006 2007 2008 2009 2010
(million USD)
( Foreign Investment and Foreign Trade Agency, 2011)

7. Top 3rd level for Economic Freedom
Country /ranked by Transparency
International, 2009/
Lowest tax rates country in Asia Pacific
region / Corporate tax-10%, 25%/
73rd country of Doing Business 2011
inquiry
7200 items can be exported to the EU
markets on GSP+ scheme with zero
import tariff
Attractive targets for FDI

8. SME production equipment and utilities are exempted from the
customs tariff and VAT
• Government Resolution No.316 approved on 14th of October of 2009
The Parliament of Mongolia approved the Policy of High
Technology Industry and it has enabled the legal base of
granting tax exemption, and credit guarantee for business
entities those are running business in high technology sector
• June 2010
Tax exemptions and Incentives

9.  Law on Concessions of Mongolia (PPP) approved on 28
January, 2010.
 puts state and local properties into economic utilization
 vast business opportunities for investors
 the list of concession items is approved by the state and local
administrative bodies
 decisions shall be made whether to finance from state
fund, to make a guarantee, to organize a tender or to
conclude a direct agreement
 Foreign legal entities or their consortiums may submit an
unsolicited proposal to enter into a concession agreement
Law of Mongolia on Concessions

10. Investor’s Protection in Mongolia
Investors
in
Mongolia
WTO member
since 1997
Member of
Multilateral
Investment
Guarantee
Agency (MIGA)
General
agreement on
trade and
economy
with 24
countries
Washington
Convention on
Investment
Dispute
Settlement,
1996
Seoul
Convention
on
Investment
Insurance,
1999
Agreement on
Avoidance of
Double
Taxation with
34 countries
Agreement on
Mutual
Protection and
Promotion of
Investment
with 44
countries

11. Shibu lijack
Mining and Mineral
Resources

12. Foreign Direct Investment – by Sector
65.3%
18.9% 2.7%
13.1%
15.8%
Mining & Mineral
exploration
Service & Trade
Bank
Others
( Foreign Investment and Foreign Trade Agency, 2011)

13. Mining and quarring /billion MNT/
www.themegallery.com
193.2
422.8
1104.8
987.9
107.5 162.0 209.2 209.2
1533.3
1417.4
1774.9
1648.4
48.3 40.9 65.6 51.9
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2008 2009 2010 of which:
abroad
Mining of coal and
lignite, extraction of
peat
Extraction of crude
petroleum and natural
gas
Mining of metal ores
Other mining and
quarrying
(National Statistical Office, 2011)

14. Strategically important largest
deposits of Mongolia
No
Name of Strategically
Important Deposit
Location (Province, County) Reserve Amount
1 Tavan Tolgoi Umnugobi, Tsogtsetsii 4.3 bln tons, coal
2 Nariin Suhait Umnugobi, Gurvantes 90.79 mln tons, coal
3 Baganuur , Baganuur 512.8 mln tons, coal
4 Shivee Ovoo Gobisumber, Shiveegobi 564 mln tons, coal
5 Mardai Dornod, Bayandun 1104 tons, uranium
6 Dornod Dornod, Dashbalbar 58933 tons, uranium
7 Gurvanbileg Dornod, Bayandun 16073 tons, uranium
8 Tumurtei Selenge, Huder 229.3 mln tons, iron ore
9 Oyu Tolgoi Umnugobi, Khanbogd 16.39 mln tons, copper; 623.3 tons, gold
10 Tsagaan Suvarga Dornogobi, Mandakh
1.28 mln tons, copper; 43.6 thousand tons
molybdenum
11 Erdenet Orkhon, Erdenet
3.2 mln tons, copper; 90 thousand tons,
molybdenum
12 Burenkhaan Khuvsgul, Alag-Erdene 40.5 mln tons of phosphorit
13 Boroo Selenge, Bayangol 22 tons of gold
14 Tumurtein Ovoo Sukhbaatar, Sukhbaatar 820 thousand tons of zinc
15 Asgat Bayan-Ulgii, Nogoonnuur 2247 tons of silver

15. Mongolia is 33rd oil and energy
exporting country in the world.
www.themegallery.com

16. Mineral elements that exist in Mongolia
Yellow parts are
elements of the
Periodic Table of
Mendeleev that exist
in Mongolia
69 elements or 62%
of the total 111
elements of the
Periodic Table have
been discovered and
studied in Mongolia

17. Food, Agriculture and
Light industrial sector

18. One of the Economic priority sector
of Mongolia
60.4%
40.9%
10%
• of manpower
works in this
sector
• of GDP
• of export
revenue
Shibu lijack

19. Agriculture sector
Shibu lijack
80%
20%
Animal Husbandry
sector products
Light industry & SMEs
produce

20. Food & Agriculture in 2010
2.1 million tons of
cereals, potatoes and
vegetables harvested from
541.4 thousand hectare.
100%
domestic
needs of meat
and potato
50-97% of
vegetables
and celeries
Livestock reached 32.7
million
20% of milk
and dairy
products
23.2 % of
total FDI

21. Tourism

22. Mongolian Tourism sector in a glance
Mongolian tourism sector was almost fully
private-sector based in the last decade and a
business-friendly legal environment has been
effectively sustained in this sector.
420 tour
operator
companies
360 tourist
camps, of which
74 are high
standard camps
340 hotels, of
which 63 are
star-rated

23. • Law of Tourism /2000/
• About 10 regulation and standards of tourism
organization, camps, hotels etc.
• Discharge to VAT & tax credit shall be granted for certain
percent of investment of construction of high class
hotels, tourist complex
• International cooperation in tourism sector is widening
these years and 16 intergovernmental agreements have
been made
Legal environment of Tourism

24. 451 450
411
456
380
390
400
410
420
430
440
450
460
2007 2008 2009 2010
Tourist /thousands/

25. In 2010, Government of Mongolia elaborated General
Development Plan for Main Tourism Regions
“Kharakhorum 13th Century” tourist complex

26. Top priority projects
• Oyutolgoi, Tavantolgoi, Black metallurgical
complex, Copper smelting plant, Coking coal
plant, Construction materials plant
Mining, Energy & Heavy
Industry
Total amount
10.2 billion USD
• Supporting the development of irrigation
fields
• High-tech industrial complex & science parks
Agriculture & Light
Industry
Total amount
650 million USD
• Project to build houses, roads, railways and
to construct power station & factory for
generation from biomass
Infrastructure sector
Total amount
240 million USD
Tourism, Environment &
Information technology
sector
• Total amount 1.1 billion USD

27. Tuv province’s some prospects
 Infrastructure development
 Road construction
 Electricity network development
 Tourism development
 SME’s development
 Agriculture processing
 Geological survey and mining

28. Tourism
Investment opportunities
Energy and
Mineral
Resources
Road, Urban
development
Trade &
service
Light
industry Food
Agriculture
ICT and
Human
Development

29. Shibu lijack
THANK YOU FOR YOUR
KIND ATTENTION
Address: FIFTA, Sambuu Str.11, Government Bld.11,
Ulaanbaatar 211238, Mongolia
Email: fifta@investmongolia.com
Website: www.investmongolia.com