Increasing exploration licenses is a key incentive to attract foreign investment

Mongolia’s mining sector boomed between 2002 and 2012. As a result, many gold and copper deposits, including Boroo and Oyu Tolgoi, have been put into economic circulation. During this time, several mining companies issued shares on foreign stock exchanges and used the funds to set up subsidiaries in Mongolia for drilling and exploration activities. Since then, export earnings have increased almost 12-fold. The tax revenues have also risen during this time. After that, the law has been amended several times, reducing the number of exploration companies as a result. The EBRD survey shows that only two or three foreign listed companies, such as Aspire Mining and Erdene Resource Development, remained in Mongolia. Increasing exploration licenses will be the key incentive to attract foreign investment. Geological exploration is a special field. Investors come at their own risk to open a deposit. Enhancing the issuance of exploration licenses will help boost the share prices of companies listed on the stock exchange that is attracting foreign investment. There are now large mines in Mongolia. As a result of the exploration, it is possible to open large and medium-sized mines.