This study is based on field workundertaken in the Spring of 2003 and builds on previousprojects undertaken by the World Bank in Mongolia, Itassesses the medium-term growth potential of Mongolia'snon-fuels minerals industry and its potential contributionto economic growth, poverty reduction, and regionaldevelopment. The report main objectives are : assessmedium-term growth potential of Mongolia's non-fuelmineral industry;diagnose the state of the Mongolianmining sector and identify problems, constraints andbottlenecks to new investments, growth and increasedcontribution of mining to the national and regional economy;provide international comparisons and examples of bestpractices as to how other countries have addressed theissues, problems and constraints,and formulate options andalternatives that may be considered by the government toimprove efficiency, competitiveness, sector management, andthe investment climate.