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Mining and trade to benefit from improved connectivity

Article - November 19, 2014

It is beneficial for Mongolia to distribute its mining resources through both road and railway infrastructures and the government is committed to meet the expectations generated in the international arena.


Located at the crossroads of Asia and Europe, Mongolia is very favorably positioned to become a transportation gateway and an efficient transit line allowing both Mongolian and foreign companies to safely, cost-effectively, and expediently ship goods and resources across the region.

As explained by Mr. Batkhuu from the Parliamentary Working Group on Transport at Mongolia’s Ministry of Transport, there are plans to make Mongolia the shortest transit line country that connects Asia and Europe. In terms of track, that means that the route from Europe through Asia via Mongolia would be 475 miles shorter than any other existing railway. Though this advantage would certainly benefit international trade by allowing cargo to be transferred much more quickly from producer to consumer, Mongolia’s already flourishing mining sector also stands to benefit from a more vitalized transportation system.  

Mongolian mining companies such as Mongolian National Diamond Drilling (MNDD) and Absolute are well aware of the advantages that a more integrated transport system would bring to their business. With an eye on international expansion, MNDD in particular, has plans to tap the international market by cooperating with international mining companies operating in Mongolia.

In the four years MNDD has been in business, it has drilled for materials and minerals as diverse as coal, gold, copper and uranium, depending on the request of the company it is working with. “We are capable of executing world standard drilling whilst having a competitive price over other companies. Our employees are fluent in English and able to handle the operation at the site without any language barrier,” says the company’s General Director, Mr. Banzragch Ts.

Because it is not common for U.S. companies to invest in Mongolian mining companies, Mr. Banzragch insists that the greatest opportunity to work in the international market is by cooperating with international mining companies that operate in Mongolia. “In the coming years, I see our company as an internationally recognized company,” he says. “Upon introducing the international standards into our daily operation and realizing the cost advantage, we will penetrate the market through other sectors.”

Engaged in the mining consultancy business since 2010, Absolute Mining is also a 100% Mongolian company that has invested heavily in advanced technology for complete solutions regarding all the commodities of the mining sector. Priding itself on extreme professionalism, it is especially committed to making strides in investigation, mine planning, and mineral exploitation research.

“We are mobilizing all our power and resources to upgrade and improve the quality of the Mongolian mining sector,” says the company’s General Director, Tsogt Tumurkhuyag.