Trade and economy relations

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Canada is the leading investor in Mongolia’s mining sector and, Oyu Tolgoi mine is indeed the flagship project that demonstrates Mongolia-Canada’s close cooperation in mining. Canadian-based Ivanhoe Mines discovered this gold-copper ore deposit in 2001 in the Gobi Desert of Mongolia. Oyu Tolgoi is one of the world’s largest new copper-gold mines and is located 80 km north of the Mongolia-China border. Oyu Tolgoi has the potential to operate for approximately 100 years from five known mineralized deposits. 

On October 6, 2009, Turquoise Hill Resources and Rio Tinto signed a long-term, comprehensive Investment Agreement with the Government of Mongolia for the construction and operation of the Oyu Tolgoi copper-gold mining complex. The agreement created a partnership between the Mongolian Government – which acquired a 34% interest in the project. Global miner Rio Tinto began managing the development of Oyu Tolgoi in December 2010. The project introduces most advanced technologies of developing an underground mine. In December 2022, Rio Tinto completed its acquisition of Turquoise Hill Resources Ltd. Rio Tinto now directly holds a 66% interest in the Oyu Tolgoi project.

The underground production from the Oyu Tolgoi copper mine was commenced in March 2023. Since the agreement between the Government of Mongolia and Rio Tinto in January 2022 to reset the relationship and move the Oyu Tolgoi underground project forward, 30 draw bells have been blasted and copper is now being produced from the underground mine. Oyu Tolgoi is expected to become the fourth-largest copper mine in the world by 2030.

National Bank of Canada owns 10.516 percent of Tenger Financial Group of Mongolia which is the holding company of Xac Bank - one of the leading commercial banks in Mongolia.

In 2018, TSX listed Erdene Resources Development /TSX: ERD/ sold 4,000,000 common shares to Mongolian residents through secondary listing of common shares on the Mongolian Stock Exchange (MSE). This cross listing was the first of its kind in Mongolia. Now more than 6000 Mongolian shareholders own 4 percent of Erdene Resources Development’s total shares.

Bilateral merchandise trade between Mongolia and Canada is moderate. In 2022 Mongolian exports to Canada amounted to approximately USD1.4 million while imports from Canada amounted to USD21.9 million. Mongolia exports to Canada: cashmere knitted sweaters, coats and other apparel and Blankets and travelling rugs, Other furnishing articles, Mongolian Traditional Dwelling as Prefabricated buildings and Saddlery and harness for any animal, hair-nets. Canada exports to Mongolia: Motor vehicle; Bearings and parts thereof; Machinery for sorting, screening, crushing, mixing earth; Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground rollers; Parts suitable for use solely or principally with the machinery; Other lifting, handling, loading or unloading machinery; and Other moving, grading, levelling, scraping. 

Since 1990s, Canadian experts and organisations actively assisted in reforms of Mongolia’s agriculture sector. Such experienced organizations as Agriteam and the University of Saskatchewan, provided technical assistance to Mongolia’s Agriculture ministry to formulate policies and strategies as well as to improve research capacities of the Mongolian University of Life Sciences. Mongolian farmers highly value Canadian agriculture equipment, technology and seeds.

In 2010, ministers of agriculture of Mongolia and Canada signed Memorandum of Understanding on Cooperation in the Field of Agriculture and Allied Sectors. The MOU offers a sharing platform between the two countries and give Mongolia and Canada a better understanding of each other's systems, policies and regulations. It facilitates sharing of best practices as well as strengthen agricultural cooperation and commercial relations between the two countries.

The first Mongolia-Canada Joint Agriculture Committee meeting, under the MOU, was successfully held in Ottawa on November 27, 2017. The parties exchanged information and views on the current state and developments in respected agriculture sectors and identified areas of future cooperation. The third joint committee meeting was held in Ottawa on November 30, 2021.

On September 8, 2016, Canada and Mongolia signed the Canada-Mongolia Foreign Investment Promotion and Protection Agreement (FIPA), which provides a more transparent and predictable regulatory environment for Canadian investors in Mongolia. The agreement consists of 5 sections, 41 articles and 3 annexes and it sets out rules on Substantive obligations of the parties, procedures for Settlement of Disputes between an Investor and the Host Party as well as State-to-State Dispute Settlement Procedures.

Convention Between the Government of Canada and the Government of Mongolia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital was signed in 2002.

Toronto Stock Exchange listed companies operating in Mongolia.

	TSX: ERD   MSE:ERDN	Erdene Resource Development Corp is a Canadian-based resource exploration company. It is primarily engaged in the exploration and development of precious metals and mineral deposits in Mongolia. The company's project consists of Bayan Khundii, Altan Nar, Zuun Mod, and Khuvyn Khar. The Bayan Khundii and Altan Nar project is located within the Tian-Shan copper-gold belt in southwest Mongolia from the Chinese border city of Ceke. The Zuun Mod project is located within 200 kilometres of China's border in Mongolia's Bayankhongor Province. The Khuvyn Khar copper-silver project is located on the Zuun Mod property. Erdene is first company cross-listed on both Mongolia and Toronto Stock Exchanges
	TSXV: ARJN	Management and Board control 50% of the outstanding shares of Aranjin. Aranjin owns Sharga Copper Project located in Gobi-Altai Province, Bayan Undur Copper Project in located in Bayankhongor Province and in process of acquiring additional highly prospective Copper Projects, such as Victory Doscovery, in Mongolia. It operates in a single segment of exploration
	TSXV: KCC         ASX: KCC	Kincora Copper Ltd is a mineral exploration company. The company is engaged in the acquisition and exploration of exploration and evaluation assets in Mongolia. It operates in Kincora's dominate position between and on strike from the two existing copper mines in the Southern Gobi. It operates in two operating segments being the Acquisition of and Exploration for Exploration and Evaluation Assets in Mongolia and Australia.
	TSX: ETG	Entree Resources Ltd is a Canadian mining company which has a 20% participating interest in mineralization on the Entrée/Oyu Tolgoi JV Property extracted below 560 metres elevation, which includes all of the Hugo North Extension and Heruga deposits, and a 30% participating interest in mineralization identified above 560 metres elevation. The company's interest in the Entree/Oyu Tolgoi joint venture has the characteristics of a royalty, with the benefits of a producer. Entree's good financial position and high-quality asset portfolio provides solid foundation and flexibility of growth.
	TSX: STGO	The Altan Tsagaan Ovoo gold and silver project (the “ATO Project”) is located in the territory of Dornod province of Eastern Mongolia.  The ATO Project is comprised of one mining licence (MV-017111) over an area of 5,492.63 hectares. ATO Project estimated to produce 146,699 ounces of Au and 672,518 ounces Ag over the project period at an attractive total capital cost of US$19.6 million and total operating cost of US$48.8 million over the project period.  The Company has approximately 20,000 meter drill program underway at Mungu, northeast of the ATO resource. The Company has also commenced exploration at the Uudam Khundii property.The Uudam Khundii property is comprised of one exploration licence covering around 14,500 hectares.
	TSX: SGQ	Southgobi Resources Ltd together with its subsidiaries is an integrated coal mining, development, and exploration company. Its reportable operating segment is its Coal Division which is principally engaged in coal mining, development, and exploration in Mongolia and logistics and trading of coal in Mongolia and China. The company also holds the mining and exploration licenses of other metallurgical and thermal coal deposits in the South Gobi Province of Mongolia. The company owns the following operating coal mine and coal projects in Mongolia: the Ovoot Tolgoi Mine, Zag Suuj Project, and the Soumber Project.
	TSX: XAM ASX: XAM	Xanadu Mines Ltd is an exploration company with a focus on Mongolia. Its business involves exploring and developing various mineral exploration projects in Mongolia. The company aims to recover copper and gold through the exploration of its properties. The projects it is engaged in include Kharmagtai, Red Mountain.
	TSX: ELEF	Mega Thermal Coal Corp. is a Canadian company wholly owned by Silver Elephant Mining Corp. The Company has one operating thermal coal mine (Ulaan Ovoo) and one other thermal coal deposit (Chandgana) in Mongolia. The company in December 2022 started to generate cashflow from its Mongolia Ovoo coal project.
	TSXV: ION	Ion Energy Ltd is engaged in the business of exploration and development of lithium. The company is focused on the Baavhai Uul Lithium Brine and Urgakh Naran Lithium Brine Project.
	TSXV: YAK	Mongolia Growth Group Ltd is a real estate investment and development company. It owns commercial investment property assets in Ulaanbaatar, Mongolia. The company operates through three segments: investment property operations, subscription products and corporate. The Investment Property operations consist of commercial and residential investment property in Mongolia held for the purposes of rental revenue, capital appreciation or redevelopment.
	TSXV: AMO	Altan Rio Minerals Ltd is engaged in the acquisition and exploration of mineral properties. The company has two projects which include Chandman-Yol in Mongolia and Southern Cross Project in Australia.