Ulan Bator - A Mongolian court has jailed former president Nambaryn Enkhbayar for four years for corruption, a move that could threaten the government's fragile coalition and increase uncertainties for foreign investors.

Resource-rich Mongolia is in the middle of a mining boom that is set to transform its tiny economy, but political uncertainties have threatened to overshadow its efforts to attract the foreign investment needed to develop mines and build vital infrastructure.

After a three-day trial, Enkhbayar was found guilty of charges that include the illegal privatization of a hotel and newspaper and the misuse of donated television equipment to broadcast from his own television station, the government said late on Thursday.

The young nation held its parliamentary elections in July and the ruling Democratic Party, which won just 31 out of 76 seats, was forced to form a coalition with Justice Coalition, which is led by Enkhbayar's Mongolian People's Revolutionary Party (MPRP).

Although Enkhbayar was barred from taking part in the elections, he remains as the chairman of the MPRP, which won the third-largest block of seats in parliament.