Erdenet, Mongolia's third-largest city with 102,000 residents and capital of Orkhon Province, was established in 1975 specifically to exploit Asia's largest copper ore deposit discovered in region, creating company town entirely dependent on mining industry. Erdenet Mining Corporation, joint Mongolian-Russian venture founded 1978, operates world's fourth-largest copper mine producing 126,700 tons of copper and 1,954 tons of molybdenum annually from 22.23 million tons of ore processed. The mine accounts for 13.5% of Mongolia's GDP and 7% of tax revenue, employing 8,000 workers whose wages and benefits sustain local economy creating prosperity unusual in provincial Mongolia. Located 375 kilometers northwest of Ulaanbaatar, Erdenet represents resource extraction economy defining Mongolia—vast mineral wealth creating boom-town development yet vulnerability to commodity price fluctuations and dependence on single industry.

The city's existence depends entirely on mining continuing viably—ore depletion, price collapses, or operational failures would devastate community built around single economic function. Joint Russian ownership reflects Soviet-era cooperation continuing post-transition, with complex negotiations over ownership shares and profit distribution creating diplomatic sensitivities. Copper exports flow primarily to China, Mongolia's dominant trading partner absorbing majority of mineral production, creating economic dependence despite political wariness. Environmental challenges include tailings disposal, water consumption, air pollution from smelting, and soil contamination requiring remediation efforts balancing production with sustainability. Yet Erdenet maintains highest living standards among provincial cities through mining wages exceeding national averages, Soviet-era infrastructure including cultural facilities and housing, and economic vitality contrasting with struggling agricultural regions. The city embodies resource economy's promises and perils—wealth generation from natural endowments, boom-bust vulnerability, environmental degradation, and geopolitical complications from foreign partnership and export dependence.