Ambassador to Australia J.
Tserendorj has said Mongolia is looking for foreign investors to help it boost
domestic crude oil production tenfold in the next three years,. The increase in
crude production to 10 million barrels a year from 1 million in 2009 would coincide
with construction of Mongolia”s first oil refinery, enabling the country to
reduce its dependence on Russia for all petroleum products.

The move is the latest by Mongolia to exploit vast untapped natural resources
with the help of billions of dollars in foreign capital as it seeks more
economic autonomy from its neighbors. “Right now we export all our crude
oil to China and are 100% dependent on Russia for oil products, except for a
little from Kazakhstan and China,” Tserendorj said. “We have a plan
to build a refinery in Mongolia in order to not be dependent on imports.”

Mongolia sits on vast quantities of untapped mineral wealth and analysts say it
could be one of the fastest growing economies of the next decade and a key
investment target for global resources companies. Foreign investors are
watching to see if the country”s fledgling democratic government can build
needed infrastructure, improve the rule of law and negotiate its way through
the geopolitical pressures exerted by Russia and China.