Sunday, April 12, 2009
Bloomberg is running an interesting essay about the potential of investing in Mongolia:
Mongolia, which possesses what Rio Tinto Group called “the world’s largest undeveloped copper-gold resource,” is luring investors who are betting that China’s hunger for resources will help the nation sustain growth amid a global financial turmoil.
Foreign investors are eyeing Mongolia’s rich mineral deposits as it helped the economy grow at an average rate of 8.5 percent in the last three years, Deputy Prime Minister Miyeegombo Enkhbold said last month. The nation attracted about $1 billion of private equity in the past 24 months, according to Robert Lepsoe, honorary consul of Mongolia.
Marc Faber, the publisher of the Gloom, Boom & Doom report, said Mongolia is “torn between two lovers -- China and Russia,” and is a country with huge potential. He is a director of Vancouver-based Ivanhoe Mines Ltd., which is developing the Oyu Tolgoi copper and gold deposit in Mongolia with Rio Tinto...
“The country is incredibly resource rich, another Saudi Arabia, next to the largest population in the world,” Faber said in an e-mail.
Read the full essay for contrary views.
Note: I am not an investment advisor and this should not be taken as investment advice.