DAO Mining has signed an agreement with the Mongolian Government to develop a huge copper and gold deposit.

The agreement, which also includes Rio Tinto through a separate investment, helps eliminate ambiguity over taxation and the government’s role and lays the foundation for additional overseas investments.

Mongolia contains large unexploited reserves of copper, gold, coal and other mineral deposits.

An additional 24 other resource deposits are awaiting development and privatisation.

Mongolia contains roughly 62,000t of uranium reserves and 100 billion tonnes of coal reserves.

The Mongolian Government aims to attract overseas investment worth $25bn in the mining sector over the next five years.

Mongolia has been unable to capitalise on the global commodities boom due to political and regulatory uncertainties.