Investor perspectives on risk and returns from #Mongolia #mining sector investments
We had the privilege of having 4 seasoned investors from Quintana Capital, First Reserve, Khan Investment and Eurasia Capital, who spoke at the Asia Mining Congress 2012 on the Risk and returns on investing in Mongolia.
In their discussion, they quoted that the ultimate challenge to Mongolia is infrastructure. Being a largely land locked country; many of the Exports are dependent on the trucking network to deliver exports to Russia and china. For example close to 99% of the coal are transported to china via this method which is largely inefficient and costly. With the development of a new railway system could potentially cut transportation cost by at least 60%.
Other significant risks quoted by the panelist includes the possibility of an bubble in Mongolia, as investors become over bullish and purchase empty mining license without much knowledge of the underlying asset.
To find out more about what was discussed or to download videos and white papers from Asia Mining Congress, visit our website now: www.terrapinn.com/asiamining