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Bureau of Mines / Minerals yearbook mineral industries of Asia and the Pacific 1992
Year 1992, Volume 3 (1992)

Wu, John C.
Mongolia,   pp. [260]-266 ff. PDF (2.0 MB)


Page 261

THE MINERAL INDUSTRY OF MONGOLIA—l992  261THE MINERAL INDUSTRY
OF 
MONGOLIA 
By John C. Wu 
 Mongolia is a mineral-rich country. According to the Ministry ofGeology
and Mineral Resources (MGMR) of Mongolia, more than 6,000 occurrences of
about 80 different minerals had been found in Mongolia. Of these findings,
about 500 deposits of 40 different minerals had been evaluated and about
150 deposits were being worked. Currently, coal, copper, fluorspar, and molybdenum
are mined by large-scale operations, while other ore deposits, such as clay,
gold, gypsum, limestone, silver, precious stones, tin, and tungsten, were
mined by medium- and small-scale operations. Most of these mining operations
were in the north-central and eastern parts of the country. 
 In the 1980's, uranium reportedly had been mined in the northeastern part
of the country by Russia. Recently, a wide variety of minerals, including
placer and hard-rock gold, petroleum, polymetallic minerals, and uranium,
and industrial minerals, such as clay, magnesite, silica sand, and zeolite,
in central and eastern Mongolia reportedly were ready for joint exploration
and development with foreign investors. 
 Mongolia's minerals output was estimated to account for 18 % of its gross
industrial production, and its minerals exports accounted for about 75 %
of the country's export earnings in 1992. Mongolia's gross domestic product
(GDP) and export earnings were estimated at $1.3 billio& and $368.0
million,
respectively, in 1992. During the ongoing economic transformation period,
the Mongolian economy had experienced negative growth and a high rate of
inflation in 1991 and 1992. According to a joint estimate by the Government,
the World Bank, and the International Monetary Fund, Mongolia's 
real GDP growth in 1990, 1991, and 
1992, was estimated at -2.0 % , -9.9%, 
and -7.6 % , respectively, and the rate of 
inflation in 1991 and 1992 was 209 % and 
321 % , respectively. 
 In 1992, Mongolia continued to rely heavily on Russia for capital goods
and industrial raw materials to meet its domestic requirements. Because of
continued economic difficulties in Russia, shipments of fuels, capital goods,
and industrial raw materials from Russia to Mongolia had been cut back substantially.
As a result, according to the Mongolian State Statistical Office, Mongolian
industrial production continued its 2-year downward trend and decreased by
15 % in 1992. Production of most minerals (except copper) and building materials
also declined owing to the lack of spare parts, fuels, and industrial raw
materials. 
 In May 1992, an additional $320 million in financial aid had been pledged
by eight major donor nations and four international organizations over an
18month period starting June 1992 at the Tokyo international aid conference
following the Prime Minister's appeal for helping Mongolia overcome the shortages
of fuel, food, and medicine; stabilize its energy sector; and upgrade its
manufacturing machinery and transport equipment. The major donors included
Japan, the United States, Germany, Asian Development Bank, and International
Monetary Fund.2 Of the $320 million, only $75 million was expected to be
disbursed in 1992 for offsetting the Mongolian current account deficit. According
to a local press report, the United States pledged a total of $23 million,
of which $12 million was for improving the country's coal and electric power
production capacity and efficiency. 
 Following approval by the Small 
People's Hural (standing legislature), the People's Great Hural (national
assembly) passed a new constitution on January 13. The new Constitution became
effective on February 12, 1992. Under the new Constitution, the 430 deputies
of the People's Great Hural and the 50-member Small People's Hural were replaced
by a single-chamber Mongolian Great Hural with only 76 members. The country's
official name also was changed to Mongolia from the Mongolian People's Republic
in February 1992. 
GOVERNMENT POLICIES AND PROGRAMS 
 In 1992, numerous laws reportedly were adopted and enacted by the Mongolian
Great Hural. These laws included an Anti-Monopoly Law, Immigration Law, Law
on NonGovernment Organizations, Land Law, Religion Law, Budget Law, Constitution
Law, Statistical Office Law, Securities Op eration Law, State Border Law,
General Law on Taxes, Law on Protection of Intellectual Property Rights,
and Tax Laws on Economic Units and Organization, on Population, Trade, and
Transportation. 
 To manage and administer the country's mineral resources more efficiently,
the central Government established the MGMR by consolidating the Mining Bureau
and the State Geological Center in August. Under this new Ministry, there
are three departments : Geological Research, Mining, and Administrative;
two divisions: Mineral Policy and Planning, and State Geological and Mining;
and one bureau for administering oil and gas resources. The Mining Department
has the jurisdiction over exploration and 


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