Source:  Mining Journal 2011 Supplement for Mongolia 10/11

On behalf of the organizers, sponsors, exhibitors and speakers at the Mongolia Investment Summit (MIS), welcome to all participants registered here in Hong Kong and to the worldwide circulation of readers of the Mining Journal.

The Business Council of Mongolia (BCM) is pleased to again be a supporting organization for MIS. BCM is a coalition of 200 domestic and foreign investors, IFIs, NGOs and diplomatic missions in Mongolia, and one of the leading organizations representing business stakeholders in the country. Now is the time to invest and allocate resources to Mongolia. The country is poised to be one of the fastest-growing economies in the world over each of the next five- and 20-year periods. The IMF estimates GDP of US$15.6 billion in 2016, up from US$6.1 billion in 2010: a 26% CAGR. Others estimate the GDP to double every two years for the next 10 years. Mongolia is estimated to hold more than US$1,000 billion in probable mineral deposits of coal, copper, gold and uranium. Coal exports are expected to reach 41.6Mt in 2013, up from 16.6Mt in 2010. Copper will surge in 2013, the first full year of production from the open pit at the Oyu Tolgoi (OT) mine. When in full production in 2019, OT will provide one-third of GDP. The mining boom is already providing significant investment opportunities in its supply chain. Financial services, property, infrastructure and agriculture are other sectors which could shape the country.  FDI rose to US$2.2 billion in the first seven months of 2011, already significantly surpassing last year’s historic high of US$1.4 billion. Confidence from rising FDI and government revenues can be seen in steep increases in planned state spending, with the recently approved 2011 national budget set at US$3.2 billion, more than half of 2010 GDP. Both of the major political parties have similar pro-business objectives. BCM does not believe it matters which party wins the June 2012 parliamentary election from an economic growth standpoint. The government of Mongolia is committed to attracting foreign investors. According to Dashdorj Zorigt, Minister of Mineral Resources and Energy, the government is well aware of the importance of stability and transparency from the investment community perspective. MIS 2011 in Hong Kong is a major event for all here exploring the latest developments in the Mongolian business environment, with direct input from key business and government figures. We are very pleased to participate with you!

Best regards,