In order to increase output of value-added goods, the government is keen to facilitate domestic capacity for processing, notably in the garments industry. Mongolia is a major producer of cashmere. Approximately 200 deposits of metals and minerals are currently being mined in Mongolia. There is significant potential for development of the mining industry, including gold, silver, limestone, nickel, phosphate, rare earth metals, zealots, lead, zinc, iron and steel. Mongolia s annual coal capacity of 8 million tons could be greatly improved with investments in equipment, maintenance and safety.
Foreign investment is needed for further development of Mongolia s minerals base.
Development of new fields may require improvements in infrastructure. Japan, Republic of Korea and USA are the most promising new markets for export, together with Southeast Asia. Agro-Processing With an area of grazing land equivalent to the size of Germany, Mongolia is a leading Asian producer of meat. Meat exports to Russia are recovering while new markets are being developed in Asia and Europe. This growth allows herd of sheep, goats, horses and cattle to reach levels that have not existed since the Soviet era.