The
Mongolian Stock Exchange  trades for 90
minutes a day out of a former movie theater, eking out daily turnover in the
neighborhood of USD70,000. Although the benchmark index is up more than tenfold
in four years, its total market capitalization hasn’t quite topped USD1
billion. It is a market suitable only for well-informed insiders and the craziest
speculators, which may be part of its rogue charm. Beyond the vicarious thrill,
Mongol mania shows what gets people excited these days. Mongolia’s sitting on a
supposed treasure trove of untapped mineral riches, next door to
mineral-craving China.

Mongolia’s
gold, copper, coal, and uranium are the envy of China, Russia, other Asian
powers, and many Western miners. Their collective heavy breathing has turned
the Mongolian capital into a hotbed of international intrigue. Russia seems to
have the upper hand on uranium, while Australia’s Rio Tinto and Canada’s
Ivanhoe Mines have tussled over a big gold-and-copper project.

Coal
could be another big earner. Coal-mining stocks starred last week in
Ulaanbaatar, several rising by the 15 per cent daily limit. The rally comes
ahead of a landmark Hong Kong initial public offering by a Mongolian coal
producer: Mongolian Mining plans to raise USD700 million, equivalent to 13 per
cent of its home country’s gross domestic product.

Another
recession will surely come, eventually. But not before the Mongolians mine much
gold and coal.