Mininginvestment risks and cooperation prospects in Mongolia

Mongolia is rich in mineral resources with extensive reserves.Mining is the key factor of Mongolian development process.Mongolia is a major producer and exporter of several minerals including coal, copper, gold, zinc, and fluorspar, in which foreign direct investment flows largely.This paper seeks to review variety of risks of politics, legislation, society and infrastructure in the process of investment mineral sector in Mongolia, and analyze the cooperative potential between China and Mongolia from the view of geology, resources, funds, technology, strategy, geopolitics and diplomacy.We find that China shall develop a long-term major investment partner relationship with Mongolia on mineral sector.