The trend of mining in the economic sector is highly correlated with the prices of mining products in the international market, which stimulates the growth of output. For example, although the output of exported fine copper rose by only 1.4%, the price in 2007 rose by 27.7% compared with 2006. The annual average price of fine copper rose from USD/ton in 2006 to USD/ton in 2007, up 26%.

Mongolia's economic growth in recent years is not directly driven by the mining industry, but comes from agriculture and the tertiary industry. However, in the long run, Mongolia's economic growth is increasingly vulnerable to fluctuations in the world's mining product prices. This phenomenon has an important impact on the relevant policy formulation of Mongolia's political and axe authorities, and it is difficult to prevent Mongolia from being affected by the recession. In fact, the revenue of the mining industry contributes a considerable proportion of the national budget, and expenditures are also increasing.

China is Mongolia's main trading partner, and Russia has maintained its position as an important strategic trading partner. In 2007, Mongolia's trade with China accounted for 51.9% of its total foreign trade volume, but its trade with Russia was declining, accounting for 19.7%.

Although the level of trade with Russia is declining, its strategic significance is very important, because Mongolia's oil relies almost entirely on Russia. In 2007, Mongolia imported 7.696 billion tons of oil products (about 533.5 million US dollars) from Russia. Similarly, most of Mongolia's wheat and wheat products were imported from Russia.

For three consecutive years, Zhengfu has previously formulated a budget deficit accounting for 3.9% of its GDP, but Zhengfu's fiscal balance has once again experienced a surplus, which is also the third consecutive year. Preliminary statistical results show that in 2007 there was a fiscal surplus of 2.2%, tax revenue accounted for 40.6% of GDP and expenditure accounted for 39.4%. The reasons for the surplus are as follows: 1) Taxes are better than expected, especially tax revenue from additional income tax and value-added tax; 2) Controlling public consumption expenditure, especially capital expenditure, which gives Zhengfu financial resources to establish a 169 million Tugrik financial reserve for Mongolian banks.

The good performance of tax revenue is reflected in all tax levels, so the revenue of the entire Zhengfu is much better than the budget project in 2007, up 9%. The important reason for this good tax performance is that the prices of exported goods are higher than expected, and the strong economic growth rate and the improvement of the income management environment.

In terms of expenditures in the 2008 budget year, expenditure accounts for 47% of GDP, up about 8%. Domestic investment expenditures grew by 53%, from 449 billion Tugrik in fiscal 2007 to 689 billion Tugrik in fiscal 2008, accounting for 13% of GDP. Wages and salary expenditures will rise by 90%, accounting for 10% of GDP.

Payments and transfers will rise by 30% from the 2007 level, which is mainly reflected in pensions and looser social welfare. Although capital balance expenditures have increased by 75%, this only accounts for 4.7% of the overall capital investment budget, which is still very low compared to the internationally accepted 10% standard.

Wages and wages increased significantly in 2007, with the average wage level of ordinary people reaching US$300. Since Mongolia is an inland country, due to its high latitude and short summer, Mongolia's main agricultural products rely on imports, so the annual output of Mongolia's mining industry accounts for more than 30% of the national GDP. To this day, many mineral resources in Mongolia are brewing and beginning to open to foreign investors.

With the intensification of industrialization and urbanization, countries around the world are attacking everywhere to find mineral resources. Due to the large scale of potential investment and the high expected future returns, some people even call Mongolia New Kingsoft in Asia.

Currently, the top seven countries in Mongolia's mining investment are Australia, Canada, the United States, the United Kingdom, Brazil, Russia and South Korea.

The world's second largest mining giant, London's Niotinto, said the deposits of the Oyutolege porphyry copper and gold mine in Mongolia were estimated at about $38 billion. Canadian mineral company Ivanhoe also obtained a mining certificate issued by Mongolia to mine more than 1 billion tons of copper and about 330,000 ounces of gold each year over the next 35 years.

But as Canadian Ivanhoe takes over the largest mining project in Mongolia, local people are beginning to worry. Some believe that mineral deposits are a key resource that affects national income, while others believe that this is also a potential driver of environmental deterioration and the [***]. More and more people are demanding that the government impose high taxes on foreign companies.

In May 2006, a protest broke out in Mongolia, and protesters burned portraits of an Ivanhoe boss, Robert Fairland, and the country's main political leaders in the main square in Ulaanbaatar. Subsequently, the parliament quickly introduced response measures and announced an increase in taxes, increasing the tax rate to 68% of profits, with a tax of US$500 per ounce of gold and US$2,600 per ton of coal.

Mongolian Zhengfu also changed its attitude towards foreign companies to invest in and develop minerals. Mongolia had promulgated the Mineral Resources Law in 1997 and introduced relevant preferential policies to attract foreign investment. In 1998, Canada's Centerragold Mining Company invested US$75 million to obtain the overall mining rights of Mongolia's Boroo gold mine and also obtained tax relief for the first five years. However, in August 2007, Mongolian Zhengfu notified Centerragold Company, requiring an additional 25% income tax and 5% mineral resource usage fee. Faced with the sudden policy changes, Centerragold Company was stunned and forced to withdraw its investment.

The "face change" of Mongolian political axe also breeds another problem: gold smuggling. In 2006, Mongolia announced that gold exports decreased by 13% compared with the previous year, and more and more gold was hidden in coal trucks and entrapped to neighboring countries.

Because the Russian boss put pressure on the Mongolian side, Jiang Feng believed that the Mongolians dared not make things difficult for him.

What Jiang Feng is interested in is the largest mining area in Mongolia that has not yet been explored. The Taolege mining area is also the largest mine to find reserves in Mongolia later. It is located in the southern Gobi Province of Mongolia, 650 kilometers away from Ulaanbaatar and only 80 kilometers away from the Sino-Mongolia border. The copper content of the mine reaches 26.6 million tons, and the gold content reaches 25.7 million ounces, with a commercial value of about 170 billion US dollars.

Mongolia has resumed oil exploration and exploitation since the early 1990s. It has found that the proven reserves can reach about 8 billion barrels. There are thirteen oil basins in the areas bordering China alone, with reserves of more than 3 billion barrels, and the quality of oil is good. Its API self-flow index is 41, while China's Daqing Oilfield's API self-flow index is only 34.

The Mongolian Mining Law, revised in June 1997, stipulates that foreign investors enjoy the same treatment as Mongolian enterprises in applying for mineral development licenses. The exploration period is three years, which can be extended for two years, the development period is sixty years, and it can be extended for 40 years. Each license can develop an area of ​​4,000 square kilometers, and the number of licenses that each enterprise and individual can apply for is not limited.

Jiang Feng has long been coveting Mongolia's mineral resources. Whether it is copper, gold, coal, or oil, they are indispensable strategic resources in the future. At this time, the political situation in Mongolia is in chaos and the active foreign capital intervention is not strong. It is a good opportunity for his strong intervention. After Mongolia's mineral resources are gradually developed and invented, it will be difficult to control the best mining areas, at least not as easy as it is now.

Although Mongolia has been actively introducing foreign investment, up to now, it has only introduced more than 2.3 billion US dollars in investment, which is basically introduced from the perspective of venture capital. After all, most foreign investors do not have any confidence in this closed landlocked country. If they want to cooperate with Mongolia, the first thing they need to solve is two problems, either reaching an understanding with Russia or using China's transportation lines, there is no other way out.

It is not easy to solve this problem, but for Jiang Feng, he has no such concern.

To him, Mongolia was the fattest and largest sheep. What we have to do now is to drive it into our sheep pen first.

In early December 2007, Jiang Feng brought a large group of troops to Mongolia and was warmly welcomed by the Mongolian government.

[***] After that, the power was controlled by the Soviet Union and was completely Russianized. The planned economy and Russian education were implemented, and the upper class was Russian. The children of powerful people went to the Soviet Union to study, and Mongolian culture and traditions gradually disappeared.

After the collapse of the Soviet Union, Mongolia broke away from Russia's track and began to seek its own development path and implement a wise rule. The highest authority of the state is Dahular (Parliament), and the political axe is composed of a majority party.

Since the implementation of the multi-party system in 1990, various political parties in Mongolia have emerged like mushrooms after a rain. Some wise-ministered parties have developed rapidly. In terms of the number of party members, wise-ministered parties have become comparable to traditional big party members who have revolutionized the party.

In 1996, the "Legend of Mingzhu" won the overwhelming victory in the Dahular election in one fell swoop, showing the strength of the Legend of Mingzhu. However, from the governing experience of the "Legend of Mingzhu" it can be seen that the Legend of Mingzhu, as an opposition party, has achieved obvious results in conducting street politics and propaganda and agitation of the masses. Once it comes to power, it quickly exposes its serious lack of governance experience and the original appearance of internal factional struggles, which seriously affects its prestige and future development among the people. During the period of the "Legend of Mingzhu", from the first day it took power, there were constant disputes within the ruling alliance. After four years, four prime ministers have changed, and the political situation is as chaotic as a lantern. It is really yours to finish the show, which is very lively.

Mongolia is rich in resources, with coal reserves ranging from about 50 to 150 billion tons and oil reserves ranging from 30 to 6 billion barrels. However, Mongolia lacks funds and technology and related laws, and resource development has once stagnated.
Chapter completed!