Friday, July 4, 2008

Al Jazeera English has an interesting article titled "The battle for Mongolia's resources". Excerpts:
Despite being one of the world's poorest countries, Mongolia's large reserves of natural resources have drawn increasing international interest alongside rising commodity prices and the rapid economic growth of China and India.

In more than 680 places in Mongolia, deposits of copper, gold, silver, iron ore, phosphor and zinc are hidden below the grassland. Up to 150 billion tonnes of high quality coal are said to be waiting to be mined.

Mongolia has the biggest known coal reserves in the world, the second largest reserves of uranium after Russia and one of the largest occurrences of silver. Its gold reserves are estimated to amount to 3,000 tonnes, copper reserves to over 30 million tonnes.
My impression from this election and the general state of politics in Mongolia, is that we don't really have political parties, but a few powerful businessmen vying for power. Ivanhoe shares soared on Monday, the day after the elections, as soon as preliminary results showed a landslide victory for the MPRP. The shares fell after the riots began.

Raymond Goldie, Senior Mining Analyst with Salman Partners, Vancouver, was quoted as saying "(The project) is now less certain than it was on Monday, but more certain than it was on Saturday, because it seems likely that the governing party will keep its majority." (Source: Salman Partners). What he means, my interpretation, is that another hung parliament would have meant further delays in the agreement finalization, and a change in government would possibly have brought some uncertainties.