Mongolian Mineral Products and Issues of International Trade

in Inner Asia
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The speedy growth of the Mongolian economy is inherently linked with the development of the mining sector. As a result of continued policies by the Mongolian Government to attract foreign direct investments, the volume of fdi in the mining sector has been increasing steadily.

World-class mines of strategic importance, like Tavan Tolgoi and Oyu Tolgoi, have started operating with high rates of coal and copper production and export earnings. However, mineral products continue to be exported to the international market at a price lower than the international market price. In addition, Mongolia’s mineral products exports remain highly disorganised, the quality of mineral products is not meeting international standards, while transportation and logistics solutions to the third market are still insufficient.

All of these pressing issues hinder Mongolia’s competitiveness in the international market. This paper argues for more research into those issues experienced in the mining sector and for the need to set up a mineral products exchange in Mongolia.



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