With its vast unexploited reserves of copper, coal and other minerals once estimated to be worth more than $1 trillion and neighboring China going through an industrial revolution, Mongolia became known as “Minegolia” as thousands of promising mining sites were identified.
Mongolia’s economy has since been floored by China’s slowdown, which has unleashed a flood of supply of commodities onto global markets. With little industry outside of the natural resources sector, no other country is as reliant on China, to which Mongolia sends nearly 90% of its exports, mostly commodities.
With no access to the sea and lacking sufficient transport infrastructure, Mongolian miners aren’t able to chase potential buyers in new markets such as India and members of the Association of Southeast Asian Nations.
Foreign direct investment into Mongolia has all but vanished while political indecision and missteps have added to the country’s problems.
To read the whole article, Mongolia: Land of Lost Opportunity, go to the website of the Wall Street Journal.
- Mongolia – When Will the Stock Market Reflect the Improving Economy? (Asia Frontier Capital)
- Economic Prospects in Several Emerging Asia Countries (Wells Fargo Securities)
- The Emerging Asia Pacific Capital Markets: Mongolia (CFA Institute)
- Sustained Growth Slowdown in China Would Spill Over to Asia-Pacific Region and Beyond (Moody’s Talk)
- China is a Minefield for International Creditors (Washington Examiner)
- Japan’s Phased Reduction of Coal Power Means Closer Links to Russia (The Asset)
- Copper Mining Opportunities in Peru and Chile (Mobius Blog)
- What Goes Up: China’s Employment Crisis (J Capital Research)
- Investing in Central Asia ETFs / Central Asia ETF List
- Russia’s Mechel to Dump US and Other Assets to Focus on Asia (MT)
- Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
- India Has a $1.2 Trillion Plan to Snatch Factories From China (Bloomberg)
- Emerging Markets’ Foreign Exchange Reserves Have Dipped (Mobius Blog)
- Why China’s Stock Market Tumble is Giving India’s a Lift (Nikkei Asia)
- China and Green Energy Drive Copper Prices to Record High (Nikkei Asia)