Factories boast top-notch gear grinding, rotary grinding, electrical and metal heat equipment.

The mining sector is Mongolia’s single largest industry, accounting for 55 percent of the nation’s industrial output and 46 percent of its total foreign direct investment (FDI). According to the Foreign Investment and Trade Agency (FIFTA), the lucrative industry has a plethora of opportunities due to its vast mineral potential, as it has more than 6,000 mineral deposits and 80 different minerals have been discovered. Likewise, its strategic location between Russia and China in terms of exports, along with mining legislation favorable for investors, has proven advantageous for the sector.

Historically, copper has been Mongolia’s most abundant resource. However recent years have shown gold to be an emerging opportunity. From 1993 to 2003 gold production grew tenfold. The nation also has substantial proven coal reserves, most often used for steam and electricity generation. Further potential exists in oil exportation, as the oil field in the Gobi region has allowed for crude oil exportation to China.

Mongolia actively encourages foreign investment and direct participation in mining-related industries such as processing, extraction and exploration. The Minerals Law, passed in 1997, ensures that the nation is commercially competitive in the international market. It enables the quick procurement of mining and exploration licenses, which can be held for 7 and 100 years respectively, and places no restrictions on repatriation of dividends and profits. The law has played a key role in attracting exploration companies to Mongolia.