Mongolia’s resources 3
Mongolia is a large, landlocked country with lightly populated and Mongolia has an intense environment and flora is plain and semi desert. Mongolia even received reasonably substantial support from donor countries but still slow growth proceeds. Its obstruction behind is light population and high level of immorality. Chances of country economic position can be change from use of mineral resources. Mongolia’s greatest impact is finding of giant contain of quality coal, gold and copper. Due to corruption and lack of potential support to develop these mineral resources it remains behind. But possibility of Mongolia’s mining is great. The government of Mongolia looking for opportunity to utilize their mineral resources so they can develop mining sector. Their mining sector can give major economic, social and political settlements.
Mongolia is running behind among most countries in developing in terms of legal framework and economic proficiency of its positioning (EBRD 2011). Government of Mongolia actively focusing on its mining sector improvements.There are few projects which governments officials focusing to get are Oyu Togoi copper and gold poject, huge Tayan Tolgoi coal project, Boroo hard rock gold mine, Erdenet-Oyoo copper mine, Tsagaan Suvarga copper mine. There are some important resource site in the north Nalayah coal mine, in the south central Oyut Oyoo and Zaamar gold mine searching on the Tuul river, which government wish to have. In addition some silver mine Asgat and Dornod Uranium mine are also on wish list. They also demand for revenue from renewed uranium search and removal projects with Rusia and Japan.
Tacan Tolgoi is the largest coal site rich in cooking coal and most important for steel production. China being neighbour country around 85% of Mongolia’s trade is with them. Also China is the world’s largest steel producer, so although most of the coal is estimated to sent them Mongolia also add up the plans to linking to Russia. Coal in Russia can be sent from Trans-Siberian railway to Far East ports through getting access from Japan,Korea and Taiwan. Building power plants and coal washing plants are already built by coal mining, which widen the economy activity. That is how pull the attraction of world’s biggest mining companies. The country vendor Erdenes Tavan Tolgoi (ETT) holds the mining license. So to get rights from it, right is given to highest bidder from auction held. For mining construction billions of dollars are needed so government made such plan to raise funds from selling shares of ETT on open market and money earned from it will provide to national people to uplift living standard of overall middle class. The government also expected to triple their national economy by 2020 from its benefit. However main worries is corruption, whether profits earn will go to poor majority of the population or into rich minority. The government expending more on electoral votes and giving assurance by saying will invest on public housing, health and education sector. So far it has mixed sign.
Currently from coal mine, coal is being transported of 2000 off-road 100 tone trucks a day due to which created dust over the road and make it looks so gloomy that need to turn lights on during the day. It also causes major local problems like poisoning pasture animal’s feed, drying wells and local health problems. Oyu Tolgoi is a copper mine operated by Ivanhoe mines and Rio-Tinto UK based mining is expected to produce 450,000 tonnes of copper/year for next fifty years and will be worth $200 billion. There is obvious economic advantage in mining region but the many concerns is its impact on environment. Oyu Tolgoi is using 920 liters of water per second for next 30 years, which could be the reason of drying well. Even mining companies admit that and plan to extract water from…