At present, mining industry of Mongolia is one of primary significant sectors; producing 27.8 percent of the GDP, 64.6 percent of Gross industrial output, 68.5 percent of export and 56.3 percent of FDI.

Mongolia’s vast territory is rich in mineral deposits including gold, copper, coal, fluorspar, silver, uranium. 24.8% of the Mongolian territory is covered by general exploration work and geological mapping at scale of 1:50 000. Exploration expenditures, especially by foreign capital rose dramatically during the last 6 years. According to the reports of Metals Economics Group, in years 2004 and 2006 exploration expenditures in Mongolia accounted for 4% of the global exploration expenditures making Mongolia one of the world’s top ten destinations for the mineral exploration.

Mongolia produces gold, copper, coal, fluorspar, zinc, iron ore, tungsten, and exports nearly all its produced copper concentrate, molybdenum, coal and zinc to China, fluorspar to Russia, the United States, Ukraine, gold to Canada, the United States, United Kingdom, and China.

Due to the favorable legal environment of the geology and mining industry to attract domestic and foreign investors, new industries are starting to intensify.

As mentioned above, foreign investors in geology, mining and petroleum industries are increasing and about 66.8 percent of the total foreign investors are from China, 14.5 percent is from Canada, Russia (3.7%), USA (1.7%) and other foreign investors.
 
With the purpose to use minerals more effective, to support processing industry which produces more value added products in 2006, the Parliament of Mongolia has re-approved a Law on Minerals.

Furthermore, the Government of Mongolia has approved “Action Plan of the Government of Mongolia for 2008-2009”, where is established projects to start exploiting Tavan Tolgoi coal mine, Oyu Tolgoi copper and gold mine , Tomortei iron ore mine, Tsagaan Suvarga copper and molybdenum mine and Asgat silver and mixed metal mine.

Bill on Artisan and Small Scale Mining will be discussed during Spring Session of State Great Hural /Parliament/. This law will regulate proper usages of chemicals in mining industry and inspection process of its usages and making clearer impending, registering and neutralizing of the chemical usages.

Even though Mongolia is a country rich with mineral resource, raw materials in future we plan on becoming a country that produces the “Value added products”.

To establish the micro and middle extractive industries directed to Asian developed countries along with our resource based Russian and Chinese industries, we are in need of technique and technology, know-how, foreign direct investment, business knowledge and experience and management and ready to cooperate in these fields which are open to everyone.