See also “Mongolia reassures mining investors”, posted April 17, 2013 and “The American Who Bought Mongolia”, posted May 24, 2013.
News Track India
ULAN BATOR, Mongolia — In a daring act of fraud that has the potential of jeopardising his re-election in the June 26 presidential polls, Mongolian President Tsakhiagiin Elbegdorj and his close associates ingeniously duped a South Korean investor into buying a license for a gold mine that, after due diligence, was discovered to have no gold value at all.
This deception was carried out in mid-2012, but the Mongolian Government was able to use its influence to keep it under the wraps until now.
Mongolia’s economy is growing rapidly as a result of a mining boom. Leading investors describe Mongolia as the “Kuwait of Central Asia”, but rampant corruption, political infighting and a still-incipient judicial system could hold its development and progress back.
The country has vast and largely untapped mineral deposits of copper, gold and coal, but until recently, has remained largely on the breadline.