“ “ I’d strongly recommend that I’d strongly recommend that really adventurous investors really adventurous investors keep a beady eye on Mongolia keep a beady eye on Mongolia this year.” this year.” David Stevenson, FT, February 2011 David Stevenson, FT, February 2011 MONGOLIA MONGOLIA
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MONGOLIA - signet.org.uk · • Mongolia has 40 million livestock, comprising sheep, goats, horses, cattle and camels. Mongolia produces a third of the world’s Cashmere. Cashmere
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““I’d strongly recommend that I’d strongly recommend that really adventurous investors really adventurous investors
keep a beady eye on Mongolia keep a beady eye on Mongolia this year.”this year.”
David Stevenson, FT, February 2011David Stevenson, FT, February 2011
MONGOLIAMONGOLIA
Mongolia
MongoliaMongolia
OverviewOverview
• 5th Largest country in Asia• 6 times land area of UK• Population 2.9 m, 1 m in Ulaanbaatar
Rare Earth Elements – Rare Earth Elements – Not so Rare in MongoliaNot so Rare in Mongolia
• Japanese and Mongolian Governments plan to jointly explore Mongolia’s large deposits of REEs
• Mongolia has 16.7% of world total Scandium
Infrastructure DevelopmentInfrastructure Development
• Less than 4% of roads are paved
• Sovereign Bonds to be issued by autumn to develop roads/railway
• Population density makes road development expensive
Agro IndustryAgro Industry
• Mainly a Livestock raising country with extensive grassland.
• Very little scope for vegetable food production
• Mongolia has 40 million livestock, comprising sheep, goats, horses, cattle and camels.
Mongolia produces a third Mongolia produces a third of the world’s Cashmereof the world’s Cashmere
CashmereCashmere
• Worlds finest cashmere comes from Mongolia
• The higher the altitude the finer the raw material
• Each goat produces an average of 141 grams of wool
TourismTourism• Tourism accounted for 18% of GDP in 2006
• Hot Springs and Spa developments
• Approximately 500 Expatriates live in Mongolia
• Within a decade, this is expected to increase to over 5000
• International brands are now opening up operations in Ulaanbaatar
ConclusionConclusion
• Long term economic prospects are bright• Near term clouded by spending pressure• Vulnerable to global commodity prices• Gross debt currently 43% of GDP –
expected to fall to 20% by 2015• Severe winter (“zud”) of 2010/11 killed a
large number of livestock
AcknowledgementsAcknowledgements
• Some of the information in this presentation is borrowed from Eurasia Capital LLC (www.eurasiac.com)
• You are recommended to visit their web site to update and pursue your research