The best ways to invest in Mongolia

Until recently, Mongolia was an overlooked frontier market. But no longer. Some analysts believe the country could become the fastest-growing economy in the world over the next decade. Here's how to buy in.

Until recently, Mongolia was "an overlooked frontier", says John Polomny on Seekingalpha.com. No longer. This $5bn economy with just under three million people is thought to have the world's second-biggest reserves of copper and uranium, and the 11th biggest stock of coal. It is also next to China, which has an "insatiable" appetite for raw materials.

Last autumn saw a long-awaited agreement between the government, Ivanhoe Mines and Rio Tinto. They will develop Oyu Tolgoi, a copper and gold mine, which will start production in 2013 and could, according to the Mongolian government, operate for 30 years and produce $30bn-$50bn of revenue. Throw in further projects and it's clear why Renaissance Capital thinks Mongolia could become the fastest-growing economy in the world over the next decade.

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