Mongolia Business and Mongolian Daily Business News

Exactly ten years later, after adopting Casino Law, the Parliament of Mongolia sent its three members to the jail. Those who were shouting “NO”, today running around initiating the draft law on Casino.

Examining the fights in the parliament about the gaming law, gives a strange feeling that behind the fight, there is something or someone else;

Why did Mr. Gundalai protest first a law protecting the Mongolian population from the risks of gaming and later on distributed letters that in fact, he is not against the law. He proposed his own variation, but who did write that one? How long has he worked on his version or did somebody else do it? Read the rest of this entry »

~ While the whole nation undergoes price increase, price waves are coming from western provinces as well ~

Those in western border of the country are hit hard by the Resolution of the Prime Minister S.Bayar on banning customs cars. In general there must not be any customs car. The Resolution which banned illegal flow that carry consumer needs goods from China is a right thing. However, S.Bayar’s sudden and unplanned movement doesn’t bring any applause. Small and medium entrepreneurs claim that their livelihood has worsened because of the decision. They lack opportunities of expressing opposite and positive sides of the Resolution to the Prime Minister directly. Therefore they addressed N.Khurelsukh, member of Khovd province Council to help them save time by delivering their message to the state. Confirming their address to the Prime Minister, over 200 sellers wrote their family member number, counters they own and signed behind. According to traders, they are afraid of drawing goods via customs even they have cash in hand and if this condition continued Khovd province might face shortage of goods soon. Following this shortage, consumer goods price is to go up because traders had no way other than increasing price before customs cars were banned. So, it’s clear that price of goods would increase not only in Khovd but also in whole western provinces. Khovd residents are planning demonstration and strike if there is no prompt evidence or result from the state. Read the rest of this entry »

Working group meeting, which was established by order of parliament speaker to make amendment and change to useful minerals law and work out on investment contract draft of strategically important deposits, was planned to be organized at 11.00 am on yesterday. Also this working group established a sub-working group which consists of civic movements, non-governmental organizations, scholars, Industry & Trade Ministry, Useful Mineral and Oil Affairs Administrative office and State Control and Supervision Office. It is headed by Industry & Trade Minister Kh.Narankhuu. The working group was planning to make enlarged session with sub-working group, and hand their draft to Government on today. But meeting was cancelled without clear reason.

The working groups summarized their opinions on about 10 principal issues and must hand to Parliament after discussion with Government. The parliament schemed to resolve the issue related to useful minerals in April. Also there is criticism that working group must include other parties’ members which have a seat in parliament. During the meeting of President with party leaders, they decided to involve them to working group. But since then no other talks about it.

“Temporary regulation on activities of artizan miners” and a draft of “Sub programme on developing micro-mines until 2015”, formulated by the Ministry of Industry and Commerce in compliance with direction of reducing negative effects of activities of individual miners, increasing their positive impacts, laying ground for micro-mines that are small and medium industry of mining sector and developing it in consistency with responsible mining in the future. With reference to the new regulation, related ministers had directions to temporarily halt activities of individuals engaged in mining and provide preparation for implementing the new regulation. The regulation incorporates the following: to provide mining site to individual miners, concluding agreements with them and organizing individual miners, prohibitions related to individual mining activities and a draft on cooperative of individual miners.

In his speech at the Parliament session, the Prime Minister of Mongolia S.Bayar raised the issue of registration perfection linking the state and citizens, released his Decree No.4 establishing “national Commission for building integrated registration system in Mongolia”. The Meeting discussed the issue of approving the Programme and decided to release a Resolution. The Resolution directs the related Ministers and Directors to organize the issues such as creating integrated address system on the basis of geographical location, providing civil smart ID cards to citizens and renewing civil registration system in accordance with proper legislations, on returnable condition via means of concluding contracts directly and step by step. The Programme is to be implemented between the years 2008 and 2012 through 3 phases. By creating integrated registration system, the Programme should comply with integrity of state policies, encourage economic growth, create state memory and contribute to fight against corruption and bureaucracy by providing state services to citizens and business organizations accessible, quick and effective.

The Government has 13 ministries and 15 members as of today. Yesterday the Cabinet meeting discussed whether the Law on the Government should be modified. The law draft excludes Deputy Premieres, incorporates ministries without DPs and states the Head of the Cabinet Secretariat of the Government as non-Cabinet member. Also it says the Economic Development Agency must be formed. The draft also integrated Ministry of Roads, Transport and Tourism, Ministry of Construction and Urban Development and Ministry of Fuel and Energy into the Ministry of Infrastructure and Urban Development, Ministry of Industry and Commerce and Ministry of Food and Agriculture into the Ministry of Food, Agriculture and Industry and Ministry of Health and Ministry of Social Welfare and Labor into Ministry of Health, Social welfare and Labor. Policy issues of geology and minerals which is under the Minister of Industry and Commerce will be transferred to the Minister of Environment, creating the Ministry of Environment and Minerals, foreign trade issues to the Minister of Foreign Affairs, creating the Ministry of Foreign Affairs and Trade and issues of children, youths and family development into those under the Minister of Health, Social welfare and Labor. According to the draft, Mongolian Government is to have 9 ministries, 2 agencies including Economic Development Agency and Cabinet Secretariat, 9 regulatory and 19 implementing agencies.

In accordance to the “The List of Strategically Important Mine ” which is passed by the parliament, “Shivee Ovoo” coal mine , stays in Sumber and Shivee Gobi, Gobisumber province, is one of such important mines. This mine contains 2.8 billion coal resource. Mr. Bold Luvsanvandan, head of Minerals and Oil Authority, provided the license of this mine to state-owned company “Erdenes Mongol”. Before this, the license of Ulaanbaatar’s major energy supplier mine was owned by “Shine-shivee” LLC. Unfortunately, the company had not solved biggest energy problems which faced with Govisumber Province and Ulaanbaatar. In agreement with this license transition, state would responsible those problems. On the other hand, this could be the first step to solve many problems with mines that explored by state capital.

According to the Mongolian and Chinese government agreement, our country has compromised about non-scheduled working posts and companies transporting coal and oil.

In particular, Gashuunsuhait post will work from 20-th of this month to 1-st July. “Ivanhoe Mines”, “Tavantolgoi Trans” and “Pushinmon” companies will make transport during this period. Also “Petrochina Dachin Tamsag Mongol” Co.,ltd will operate in Bayanhoshuu-Uvdug post.

Bulgan, Takashiken, Burgastai and Laoemyao posts will work temporarily because goods and equipments of companies constructing Durgun and Taishir hydroelectric stations will be passed through these posts.

Government permitted that demanded materials; equipments and transport means for construction work of Numrug River Bridge will pass the border through 1383-rd border mark from 1-st March to 1-st September and compromised start date of these posts.

In 1990, the street of Ulaanbaatar has only few old Russian cars. As we already know, many things had changed from this year including cars. Today, Mongolians drive world’s popular brands such as BMW, Ford, Nissan, Hyundai, Toyota and much more. The distributor of BMW, Naran Motors, imports new model of this world giant. Also Monnis group, representative of Nissan motors, is informing that they imported all new models of Nissan. As of 2008, according to the officials, 110 thousand cars in Ulaanbaatar. From the point of economic view, we easily see that this industry also developing auto service and auto repair business. Usually people choose not too expensive, small, Japan and Korean cars.

Activities of artisanal miners over-exceed beyond limits. It’s a normal phenomenon as they refine gold from dirt, polluting rivers and waters. Manual and mechanic wells in Umnugobi, Dornogobi, Bayankhongor and Uvurkhangai provinces were polluted by chemical substances because ninjas in the Gobi region, refine their gold near these wells. According to the joint inspection of State Professional Inspection Agency, Ministry of Environment and National Emergency Management Agency, 22 wells in Bayankhongor and 1 in Uvurkhangai province were polluted with cyanide and natrium.

In Shinejist soum, Bayankhongor province 4 polluted wells were registered. “Ninjas take water from the well with a pot dipped into a substance and dispose water, used for refining gold, near the well. They purposely pour diesel and gas into the well when required to leave the well,” complain native residents to the professional inspection and emergency specialists. There is no way to use such poisoned water for drinking and watering livestock. In such bad way, ninjas take prerogative power over wells.

More powerful ninjas, who load gold dirt by trucks, move from one well to another, refining their gold. The research on estimating natrium, mercury and cyanide contained in the water of these polluted wells is being continued.