The oil sector has a high potential for exploration activity and large-scale investment is required. A total of 22 contract fields, covering 538,000 square kilometres in Mongolia's territory were se­lected. Now American, Australian and Chinese oil companies are running their activities on six contract fields under a Production Sharing Contract concluded with the Government of Mongolia.

Mining is one of the main branches in Mongolia's economy. Mongolia is included in a number of countries that are rich with mineral resources. Mongolia's immense potential as a major supplier of minerals is now attracting widespread interest from all sectors in the international minerals industry.

A total of 18 gold ore zones such as Khentii, Bayankhongor, Kharkhiraa, and Khangai mountain range have been determined in Mongolia. There are 152.6 tons of explored gold reserve in the country, of which 90.6 tons are in the Tuul, Bayangol, Arnaiman, Ult and Toson placers and 62 tons are included in the Boroo, Sujigtei and Tavt basic deposits.

Mongolia's current coal production is approximately 5 million metric tons, which is mostly consumed by domestic power producers. The country is estimated to have potential reserves of 125 billion metric tons.  Many of these reserves have been proven, but remain undeveloped due to a lack of infrastructure.

Over 200 deposits of coal and brown coals, which are the basic source of Mongolia's fuel and energy, were identified in 15 basins. Exploration works were done in 76 of the aforementioned deposits and coal mines were established in 40 coal deposits. Approximately 4,900 tons of coal is extracted in a year from the main coal deposits in Baganuur, Sharin Gol, Shivee Ovoo, Aduun-chuluun and Talbulag.

Four independent silver deposits were discovered in Mongolia, and exploration works were carried out in the deposits. The main source of silver, reflected in the state reserves statistics, is silver-bearing, non-ferrous metal deposits. Most part of the silver reserve in the state reserve registration is allotted to the Asgat silver-sulfate, the Tuv and Mungun-Undur silver-mixed metal deposits. The silver reserve will be increased during exploration works of soil and mixed-metal deposits.

The Janchivlan, Modot and Elstei tin placers were researched and the Nukhet Mountain pass ore deposit was determined as being rich in tin.The tungsten deposits and findings are widely dispersed in the territory of Mongolia. Currently, the Khovd Gol and Ulaan Uul tungsten deposits are being exploited.

Researched lead and zinc deposits are situated in the country's eastern part. The main lead and zinc deposits are the Tumurt Ovoo, Ulaantsav, Mungun-Undur and Baits. The infrastructure is in place for those desposits but they have yet to be exploited.