Mongolia to recover mine supply to China

Mongolia expects to recover its mine supply to the Chinese market in five to ten months as China has reduced purchasing mine in Mongolia due to the sluggish global economy, the vice minister of the country's Ministry of Economic Development Chuluunbat Orhirbat said here on Tuesday.

Addressing the Mongolia Investment Summit 2012, Chuluunbat said China has reduced its purchase of mine they buy on the Mongolian market in all kinds of commodities such as coal, iron, copper, zinc and others, as China's economy is slowing down under the impact of global economic crisis.

Chuluunbat said they witnessed lots of mine companies having shut down in Brazil, Australia and Indonesia because of the global economic slow down, while the Mongolian companies are surviving competitively in this difficult time.

"We do hope maybe in five months or ten months, Mongolian mines will be on service and will be competitive to supply the commodities to the Chinese market," he said.

Besides, Chuluunbat said the new government plans to raise up to 5 billion U.S. dollars in the global market over the next two to three years in order to push Mongolia's economy forward, adding that it is a good news for investors who intend to invest in the country.

Among the funds to be raised, 1.5 to 2 billion U.S. dollars will be from the global open market, while the rest will be through government funding from other countries like China, Japan and Germany.

Chuluunbat said Mongolia enters a crucial phase in its development with large mining projects going into production and a new government coming into power.

He said this new government formed in August is working on updating its foreign direct investment and domestic strategies, especially on mining businesses, to attract international investors.

The two-day summit starting Tuesday with a total of 56 expert speakers and panelists, aims to update Mongolia's foreign investment climate, new investment opportunities in the mining and non-mining sectors, as well as the challenges lying ahead.

It is the third year that the annul meeting was held in Hong Kong. The meeting attracted over 450 investors, business leaders and government representatives worldwide.