Mongolia Business and Mongolian Daily Business News

“Oyu Tolgoi draft agreement will be discussed, adopted by the State Great Khural and the Government will be granted with power to sign on it very soon” says an official who is close to the development around the issue. According to his talks, Oyu tolgoi agreement will be adopted before Naadam Festival and the Government might sign on it before the end of July.

Business-mongolia.com reviews that the biggest leverage for this urgency is obviously the global financial recession. Mongolia would have budget deficit of 93 billion MNT (80 million US$) by the end of this year. Therefore, the Government had to cut some of its social welfare expenses, including newly marriage allowance, even child money.

Business-mongolia.com will come with more updates in next two weeks.

MONGOLIAN LAW (Draft)

Date                                                                                     Ulaanbaatar

AMENDMENT TO THE THE MINERALS LAW OF MONGOLIA

1. With reference to Minerals Law of Mongolia, Article 5. Ownership of minerals, Clause 5.4, which states “The State may participate up to 50% jointly with a private legal person in the exploitation of a mineral deposit of strategic importance where State funded exploration was used to determine proven reserves. The percentage of the State share shall be determined by an agreement on exploitation of the deposit considering the amount of investment made by the State” to be amended as “Strategic mineral deposits where State funded exploration was used to determine proven reserves shall be deemed 100% property of the State. In the instance of a joint development of the strategic mineral deposit with a private legal person, the State may participate up to 50% jointly, and State will utilise transparent means to develop the mineral deposit. Read the rest of this entry »

Yesterday, MPRP group at SGK held meeting and during this meeting, Minister D.Zorigt made disclosure regarding the current development on OT agreement.

Q: You presented the comments and findings of the Standing Committee on Economy to MPRP group members. What were the comments and reactions of the party group members?

Minister D.Zorigt: In accordance with the comments and findings of the Committee, the signing sides are added. Ivanhoe Mines Inc Co.,Ltd was sole signing side before, but the signing sides are added with Rio Tinto International Holding and Ivanhoe Mines Canada. Also the term of building investment is set at two years, because of the criticism from MPs on raising fund length. Moreover, the clause is added that within five years of time after the raising fund, the factory must be built and operate in its full capacity. Read the rest of this entry »

Demparty group at SGK is in meeting now. The party group will discuss several important issues, including hearing of the working group report on Oyu Tolgoi draft agreement. Also, Treasury of the Motherland Fund, presented by the Government of Mongolia, BayanMongol (RichMongolia) Corp., presented by the party group. Also another issue, rated as confidenital, of Law on Mercy and the draft amendment in the law on Budget of 2009 of the Mongolia Development Fund.

BEIJING, June 28 (Xinhua) — Chinese and Mongolian armed forces kicked off a joint peacekeeping exercise here on Sunday, sources with China’s Defense Ministry said.

Coded “Peacekeeping Mission-2009″, the exercise is the first joint peacekeeping exercise that China has held with another country. It also marks the first joint military training between China and Mongolia.

The exercise was set to boost the capacity of both military forces in carrying out peace-keeping missions, according to the sources. Read the rest of this entry »

Water is the main source of our life. It is the main guarantor of our healthy and quality life. Over 1.1 billion people are in short of drinking water.

Greenland is the richest country with its drinking water quota per person, but Kuwait has 10m3 drinking water per person per year. Every Mongolian citizen has 13.739 m3 water per year, which is quite below the world average.
According to the statistics, 5565 rivers and 9600 springs were registered in 1995, but 683 rivers and 760 springs were disappeared. Read the rest of this entry »

Not much improvement has shown at the spring session of State Great Khural on adopting draft agreement on Oyu Tolgoi investment. The current update is made by MP Kh.Badamsuren.

Q: Can you update us on Oyu Tolgoi investment agreement?

MP Kh.Badamsuren: Working groups of the Standing Committee of State Great Khural prepared its comments and findings and handed to the Government. The Government will discuss it with the investing side. I think both sides are negotiating on it. You can understand that the negotiation making is accelerating. Read the rest of this entry »

Interview with Stephen Engle from Bloomberg, Ulaanbaatar

Mongolian President Tsakhiagiin Elbegdorj wants to change a proposed gold and copper mining deal with Rio Tinto Group and Ivanhoe Mines Ltd. to give the government cash instead of an equity stake.

Ts.Elbegdorj: We are approaching the final moments to get a good agreement. I would like to say to the foreign investors that do not close the door yet, there are still opportunities and I will try to find common language with our people, with our Parliament and try will push my Government to find win-win proposal. Read the rest of this entry »

21.0 thousand shares of 11 JSCs were sold at MSE totalling 15.4 million MNT trade. 9.6 thousand Genco tour bureau shares were sold and it was the most actively traded share at the stock market. Share price of Zoos bank was increased by 9.0% but share price of Genco tour bureau was decreased by 7.78%. Index top 20 was 4812.94 units and was increased by 74.03 units if compared to the previous day’s trade.