Naranchuluun 2006 Minerals Yearbook (The Mineral Industry of Mongolia)
Since the economic reform of the 1990s, the Mongolian Government has gradually privatized the mining sector. In 2006, the mining and quarrying sector accounted for 30% of the country’s gross domestic product; the value of the sector’s output accounted for 72% of the total value of industrial output. Mineral exploration was hampered by limited infrastructure, such as a shortage of roads and water resources, and severe weather in Mongolia. During the past several years, however, economic and governmental reforms have led to increased foreign investment in mineral exploration and exploitation in the country. Mining and oil exploration accounted for 61% of total foreign direct investment in 2005; this amount was expected to increase during the next several years. China was the leading foreign investor in Mongolia followed by Canada, the Republic of Korea, Japan, and the United States. The total labor force of the industrial sector decreased to 53,600 in 2006 from 59,341 in 2005, but employment in the mining and quarrying sector increased to 16,167 in 2006 from 14,503 in 2005 (Ministry of Industry and Trade of Mongolia, 2006, p. 11-13; National Statistical Office of Mongolia, 2006, p. 53, 71).
