Mongolia is a landlocked country, located in northeast Asia between Russia and China. The country has a total area of 1,565,600 km² and shares a 4,673 km long border with China on its eastern, western and southern sides and a 3,485 km long border with Russia to the north. The population of Mongolia is approximately 2.5 million people with approximately 1,000,000 people living in Ulaanbaatar, the capital and largest city. Other major cities include Darkhan, an industrial center near the Russian border in the north and Erdenet, a copper mining center, also in the north. Some 40%, of the population lives in the countryside, primarily subsisting as nomadic livestock herders, while the rest live in cities or small settlements spread throughout the country. The official national language is “Khalkha Mongol” and the primary religion is Buddhism.

Mongolia has a railroad link with Russia and China and good air links with Moscow, Western Europe, and East Asian countries.

Mongolia has a democratic form of government based on a uni-cameral parliamentary system and a directly elected President. The Prime Minister is nominated by and serves on behalf of the majority party in the parliament. The Constitution enshrines the concepts of democracy, freedom of speech, and judicial independence, among others. The first multiparty elections were held in July of 1990 at which the Mongolian People’s Revolutionary Party (the “MPRP”) became the dominant political party.

The mining sector is Mongolia’s single largest industry, accounting for 55% of industrial output and more than 40% of export earnings. Prior to 1970, Mongolia was not able to develop its vast mineral resources due to a lack of infrastructure and lack of financing for mineral resource development. However, beginning in 1970, numerous deposits of copper, gold, fluospar, uranium, and coal were developed by joint ventures formed in partnership with the Soviet Union and its allies. Today, the government of Mongolia has adopted a number of long-term programs to explore for and develop promising mineral deposits. Foreign investment and direct participation in a wide range of mining-related industries are actively encouraged, particularly in connection with the exploration, extraction, and processing of mineral resources. Mongolia’s national policies concerning its mineral sector are continuously under review to ensure that Mongolia remains favourable for foreign mineral investment and globally competitive with other nations.