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The Mongolian government established Erdenes Mongol in 2006 as a holding company to represent its interest in strategic mines, manage mineral licenses and promote the mining sector. It has since evolved into a complex company with interests not only in mining but also mineral processing, unconventional oil and gas, roads, border crossing facilities, hotels, restaurants, power generation, engine repair, steel, trade promotion and asset management.

 Our report explores the company’s recent unconstrained expansion to determine whether it serves the best interest of the state and the Mongolian people. We also discuss weak profitability at the company, especially at subsidiaries and joint ventures, and how this can be turned around. Finally, the report elaborates on a number of policy options such as new legislation, improved oversight of subsidiaries, project-level market assessments, criteria for board and manager appointments, and greater transparency.