There is an old investment expression that suggests “that investment money goes to where it finds the greatest opportunities.” With recent developments in Mongolia, we may be at a positive stage right now. In our opinion, the “stage is set” for the investment world to once again focus on Mongolia’s mining potential. Of recent note is the fact that there seems to be substantial progress in the negotiations between the Government of Mongolia and the mega billion dollar Oyu Tolgoi mine operator NYSE listed Rio Tinto. Over the last three years, most of the Mongolian based mining and exploration companies and projects have suffered. Perhaps worse, the working population of Mongolia has endured an unfortunate economic decline.

Mongolia, with a population of three million people, will benefit from what we expect to be substantially increasing investments of foreign capital to achieve its enormous economic potential. The three year delay has cost the Mongolian economy in lost growth coupled with a severe decline in the value of its currency. Today, Mongolia’s resources may again offer exceptional potential for its citizens and investors. Hopefully the long awaited for agreements between the government and the corporate parties involved will be forthcoming.