Situated in between China and Russia, Mongolia is enriched in various mineral resources and an ideal place for development of mineral industry. With the discoveries of the Oyu Tolgoi giant copper—gold deposit and the White Hill large size copper—zinc deposit occurring in southern Mongolia. The metallogenic studies and mineral exploration have attracted the great attention from Mongolian domestic and international mining communities. To carry out the idea of "two types of mining markets and two types of mineral resources" in China, the Mongolia, especially southern Mongolia,will be the best choice. For clearly understanding the present mineral industry of Mongolia, the basic geological feature of mineral occurrences and the modified mining legislation have been summarized, the exploitation of important mineral deposit and the future of Mongolian mineral industry have been discussed in this paper. The purpose for this work is to upgrade the level of metallogenic study and mineral exploration on various deposits occurring in Mongolia, especially in southern Mongolia.