Toronto, Canada, October 28, 2009 --(PR.com
)-- DAO Mining Corporation are predicting the sprawling desert country of Mongolia will become the future’s big resource story, following a landmark agreement with the government to develop one of the Asia’s largest copper-and-gold deposits.
The deal, which also involves the mining giant Rio Tinto Plc through a separate investment, helps clear up uncertainty over taxation and government involvement and lays the groundwork for more foreign investments.
Mongolia, a sparsely populated, landlocked country tucked between Russia and China, has some of the world's largest untapped reserves of copper, coal, gold and other mineral deposits. At least 24 other resource deposits are waiting to be developed and privatized. It has an estimated 62,000 tons of uranium reserves, the world's 15th largest, and total coal reserves of about 100 billion tons. The Mongolian government hopes to attract USD 25 billion in foreign investment in the mining sector over the next five years.
DAO Mining Corporation is focused on the most valuable minerals and the gold of the newly tapped resources. So far, political and regulatory uncertainties have kept Mongolia out of the global commodities boom. Concern about the potential damage mining could inflict on the environment has also spurred public opposition to foreign investment in the past. Global banks and foreign investors including Credit Suisse Group and Deutsche Bank AG have provided development financing for resources companies such as Mongolia Energy Corp., Lung Ming and South Gobi Energy Resources. Resource firms are also seizing opportunities. DAO Mining Corporation is working diligently to make sure that removing these mineral and gold deposits with cause minimal damage to the environment.