While coal was Mongolia’s top performing commodity in 2017, Mongolia observers predict copper to steal the show this year. As a resource-based and export-focused economy, the outlook for Mongolia is strongly influenced by global market movements. These look set to crown copper as the country’s top earner.
In 2017, Mongolia’s coal deposits helped the country move to recovery. Often associated with toxic emissions- and in Mongolia’s case, chronic air pollution- it was instrumental in the delivery of growth exceeding 5%. The reasons are well documented and understandable. Even with more muted industrialisation, China is a key steel producer and relies on coal to power its mills. As my colleague recently reported, though, Xi Jingping and others are genuinely making green overtures, and this led to the closure of hundreds of mines in Inner Mongolia last year. Combined with a ban on North Korean imports, this placed Mongolia as a key exporter.
Mongolian Metals Corporation LLC (MMC) is a Mongolian mining company with a portfolio of exploration licenses representing significant deposits of copper, gold, molybdenum, coal and quartz across four aimags of Mongolia. The company also benefits from strong ongoing access to further license acquisition opportunities. MMC is a spin-off from Asia Pacific Investment Partners. MMC was founded in April 2008 and has to date acquired four exploration licenses in Mongolia. Aggregate investment into MMC since at 31st December 2008 totaled circa US$6.4 million. Investment into the business has to date been 100% financed by Asia Pacific Investment Partners Corporation Ltd (APIP).