But the sector suffered badly in the early 1990s. Mongolia must now import 40 per cent of its cereal needs, a factor that contributes to a vulnerable food-security situation. Cultivation of vegetables is up, but remains minor - only 31,000 tonnes in 1997. Mongolia is resource-rich. This vast territory contains 15 per cent of the world's supply of fluorspar and significant deposits of copper, molybdenum, iron, phosphates, tin, nickel, zinc, tungsten and gold, as well as at least 100 billion tonnes of coal.
Copper is the nation's number one export.
Minerals account for more than a third of Mongolia's GDP and earn half of its hard currency. Gold production is increasing. Mongolia also contains significant reserves of oil, which could transform the economy. But infrastructure and transportation limitations mean that commercial extraction is limited. The government hopes that the completion of a pipeline to China will change this.