Digital Market Research Mongolia Mining/Commodities

On behalf of the Federal Ministry for Economic Affairs and Energy (BMWi), the East Asian Association (OAV) in cooperation with the German-Mongolian Business Association (DMUV) is organizing a market survey for German companies from the mining and raw materials sector from November 22, 2021 to November 26, 2021 and related sub-sectors.

The current situation and the effects of the global corona crisis do not allow a physical implementation on site, so that the market exploration takes place digitally. This is a project-related funding measure as part of the BMWi market development program. The target group are mainly small and medium-sized German companies (SMEs).

The target group are mainly small and medium-sized German companies (SMEs). German companies are supported in opening up the Mongolian market.

Advantages of the new format

·  Digital format to establish contacts in Mongolia from Germany

·  Virtual roundtable with German companies active in the target country

·  Webinar for the successful market development in Mongolia

·  Online briefings with country experts

·  Detailed information on the target market as well as individual information on business opportunities in Mongolia

·  Online company visits with subsequent technical discussions

·  Matchmaking event to deepen the conversation and exchange ideas with potential business partners

Market potential for German companies

Mongolia is one of the ten most resource-rich countries in the world. Commodities account for over 90% of the country's exports. The mining sector alone accounts for almost 40% of Mongolia's gross domestic product. In addition to copper, gold and uranium, Mongolia is also rich in iron ore, tungsten, silver, molybdenum and rare earths. Oyu Tolgoi in southeastern Mongolia is one of the five largest copper deposits in the world. This abundance of raw materials gives the country special geostrategic importance and makes it an important raw materials partner for a leading technology location and an export nation like Germany. Raw materials that occur and are mined in Mongolia are essential for the manufacture of many high-tech products.

The Mining Sector of Mongolia

With a population of just 3.3 million, Mongolia is a sparsely populated landlocked country bordering Russia to the north and the People's Republic of China to the south. The country is four times the size of the Federal Republic of Germany and is not only one of the largest countries in the world, but also one of the seven most resource-rich countries in the world. Due to the geological history of its formation, a varied terrain was created with enormous deposits of minerals and oil as well as large coal deposits, of which only a third has been fully explored geologically so far.

The mining sector alone accounts for almost 40 percent of the gross domestic product (2020: approx. USD 13.4 billion). Commodities alone (including coal) also account for over 90 percent of all exports from the country. The investment-intensive sector thrives on foreign involvement. So far, investments from the major mining nations of China, Russia, Canada and Australia have dominated, while German companies are hardly involved in the sector, or only in smaller projects. Measured by the large number of deposits of a wide variety of raw materials and the growing importance of sustainability concepts in mining, the Mongolian market is still relatively small in terms of international mining companies and offers German companies a wide range of business opportunities.

German expertise is in demand

Even if the coal and steel industry in Germany itself no longer has its historical importance after the cessation of hard coal mining and the decline in ore mining, according to the Federal Ministry for Economic Affairs and Energy in 2017, coal, oil, natural gas and mineral raw materials were still being mined in Germany Funded with a total value of around 12.3 billion euros. Germany's internationally active supply industry associated with mining, providers of specialized engineering and mining services with the appropriate know-how and technical solutions, especially in the field of geotechnical and environmental engineering, and university expertise and training in mining continue to be important on foreign markets. The TU Bergakademie Freiberg and the RWTH Aachen, for example, have long-standing partnerships with Mongolian universities. Companies like Schachtbau Nordhausen are already active in Mongolia.

Exactly these technologies, experience and expertise from Germany are in demand in Mongolia. Not only the historically close relationships and intensive academic cooperation in the days of the GDR establish the solid basis for cooperation and business activities between the Federal Republic and Mongolia, but also the outstanding position of Germany in the politics of the 3rd neighbor, which leads to the unbroken demand for German products and German technology in the country. Products and technologies 'Made in Germany' also enjoy a very high reputation and are also in demand in the industrial goods sector.