Economic activity in Mongolia has traditionally been based on herding and agriculture. Mongolia has extensive mineral deposits. Copper, coal, molybdenum, tin, tungsten and gold account for a large part of industrial production.

The total cultivable area is estimated at 1.8 million ha, which is about 1 percent of the country. Some 80 percent of the total land area can be used for pastoral activities. The main crop growing areas are in the central-northern part of the country and include portions of Selenge, Tuv and Bulgan aimags (regions), which account for about 67 percent of all cultivated land.

Cereals, occupying nearly 600,000 ha or over 90 percent of the total cropped area in 1992, are the most important crops, but have declined recently due to the reduced availability and increased cost of production inputs and shortage of working capital. About 53,000 ha, or 8 percent of the total arable area, were devoted to fodder crops in 1992. Potatoes and vegetables together accounted for 11,000 ha, or 1.5 percent of the area planted, while fruit trees covered an area of about 700 ha. About 38 percent of the population lives in rural areas.

In 1995, the agriculture sector (including livestock) accounted for over 25 percent of the nation’s GDP, and employed 28 percent of the economically active population.

Area:
total: 1,564,116 sq km

Climate:
desert; continental (large daily and seasonal temperature ranges)

Terrain:
vast semidesert and desert plains, grassy steppe, mountains in west and southwest; Gobi Desert in south-central

Elevation extremes:
lowest point: Hoh Nuur 518 m
highest point: Nayramadlin Orgil (Huyten Orgil) 4,374 m

Natural resources:
oil, coal, copper, molybdenum, tungsten, phosphates, tin, nickel, zinc, fluorspar, gold, silver, iron

Land use:
arable land: 0.76%
permanent crops: 0%
other: 99.24% (2005)

Irrigated land:
840 sq km (2003)

Natural hazards:
dust storms, grassland and forest fires, drought, and "zud," which is harsh winter conditions

Current environmental issues:
limited natural fresh water resources in some areas; the burning of soft coal in power plants and the lack of enforcement of environmental laws severely polluted the air in Ulaanbaatar; deforestation, overgrazing, and the converting of virgin land to agricultural production increased soil erosion from wind and rain; desertification and mining activities had a deleterious effect on the environment.