New Mongolian president Tsakhia Elbegdorj was elected last month largely to help improve Mongolia’s economic problems.
One way that he might go about doing that, a recent UPI report suggests, is by opening up the countries vast mining reserves.
Mongolia has many gold and copper deposits. According to the news service, Canadian mining company Ivanhoe, said that the Oyu Tolgoi mine alone contains “45.2 million ounces of gold and 78.9 billion pounds of copper.”
Ivanhoe, which has worked to close the deal for five years, said its exploitation of the mineral field would result in a 34-percent increase for Mongolia’s gross domestic product.
That is growth Ulan Bator would seem to be excited to tap into since Mongolia is seeing economic pressure as commodity price falls have hurt its exports of gold, copper and coal, which had fueled growth of 9 percent a year from 2004-08, and its deficit has grown forcing unpopular budget cuts. Mongolia recently turned to the International Monetary Fund for help in the form of a $224 million package of loans.
Elbegdorj wants to make sure that Mongolia gets its fair share of the mining profits.