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resources but an uneven distribution of water: the north has significant sources, while the south is desert. All surface water in Mongolia is covered by ice for about six months a year and so groundwater is the primary source of water supply for major urban and industrial centres. Having adequate groundwater is crucial in coal chemical plant capacity design and site selection. 5) Capital Intensive: The coal chemical industry is rather capital intensive and dependent on economies of scale, with most application project's capital cost amounting to billions of dollars. Without enough domestic funds to develop the coal chemical industry, Mongolia needs to attract the financial strength of international coal and chemical companies to tap into in this sector. CONCLUSION Mongolia's burgeoning coal chemical industry is an inevitable trend of development and one that will take full advantage of the country's abundant coal resources, reduce its imports of energy and satisfy the surging demand for chemicals from China and Russia. A healthy and orderly development is needed for this industry, giving full consideration to the resources and environment carrying capacity, with a steady to moderate push into the development process to achieve the goal of economic benefits and environmental carrying balance. n Leo Liu is a private investor and currently holds the position of Investor Relations Officer with Prophecy Coal Corp. and Prophecy Platinum Corp. Disclaimer: The views expressed in this article are those of the author and may not reflect those of Prophecy Coal Corp. Neither Prophecy Coal Corp. nor the author can guarantee accuracy of all information provided. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Prophecy Coal Corp. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. NOVEMBER 2012 www.resourceworld.com 53