Daily Business News Mongolia

Draft Law on Amending the Mineral Law of Mongolia Will be Discussed Next Week

Parliament will hold an ad hoc session next week to discuss draft amendments to the minerals law, which the government wants quickly approved. The Speaker of the parliament, D.Lundeejantsan, announced parliament will meet at 10 am on March 25, with pre-discussion meetings the day prior amongst related standing committees and party councils. According to the draft amendments, which appear set to have bi-partisan support, the Government will be entitled 51 ownership of strategically significant mineral deposits explored by state funding, or more than 34 percent if explored by private funding. The Government earlier withdrew a draft investment agreement with Canadian invested Ivanhoe Mines Mongolia Inc, in a bid to increase its share of a mining project. The agreement regarded Oyutolgoi, a large-scale copper and gold project. The new amendments will redefine strategically significant, and has changed the phrase “up-to” to “minimum” on ownership percentages. (more…)

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Pure Water Resource in Asian Countries Comes to an End in 10 Years

The United Nations have announced every March 22 of each year as the World Day of “Water protection”. In prior to this event, Mongolian Green party informed the journalists yesterday on proper use of water. They warn that rivers were polluted and pure water shortage is in scene due to illegal activities of those in power. According to the research of scientists, pure water resource in Asian countries comes to an end by the year 2018. Thus it is said that the state should attach attention on drinking water instead of giving strategic significance to minerals. Due to lack of proper policy on using pure water reserve, rivers and lakes are polluted much. (more…)

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Center for Individual Freedom Calls on Bush Administration to Defend Western Interests in Mongolia

US Taxpayer Monies Undermining American Interests, Benefiting Russians

WASHINGTON, March 13  — Today, the Center for Individual Freedom (CFIF) sent a letter urging U.S. Secretary of State Condoleezza Rice to investigate the rapidly-deteriorating situation in Mongolia, a key U.S. ally, as it seeks to expropriate Western interests.

The Mongolian Government in recent weeks has moved to force Western companies to relinquish control of mineral deposits to the state. These actions pave the way for Russian companies to make billions in profits at the expense of Western firms. (more…)

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Mongolian Soldier Dies While Peace Keeping

Two soldiers have died while on duty in Sierra-Leone. On March 14, the armed forces Headquarter received a message that Colonel D.Narantulga charge of the fifth Mongolian regiment serving under the UN flag in Sierra-Leone, died from heart attack. The previous death occurred last November when, UN peacemaker serving in the 3^rd military team, B.Mungunshagai died from lung disease.

Military hospital department chairperson and Peace support Cooperation Office of the armed forces HQ, Colonel R.Davaadorj, told us on March 14, B.Narantulga died at 03.40am Ulaanbaatar time on March 14. According to the HQ commander’s order, an autopsy will be conducted in Ghana at the UN clinic. The late D.Narantulga was on duty on some days for 14 to 15 hours in temperatures in Sierra-Leone reaching 35 to 38c. The hot season may have impacted on the soldier’s health.    

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Mining Associations Made a Statement

STATEMENT OF DENUNCIATION

The Mongolian National Mining Association profoundly regrets for the Mongolian Government’s and Parliament’s gross ignorance in their decision and law making practices of the views and opinions of the private sector, whose rights and benefits are at stake and are eventually to be regulated by the very laws and regulations, which are becoming increasingly unrealistic to enforce.

The policy vacuum for clear absence of comprehensive, visionary and sustainable government policy in the mining sector is being skillfully filled with unabashed attempts of some political parties and politicians to increase their popularity rate at the dawn of the parliamentary election by making empty promises nurtured on narrow political interests to earn re-election at any cost. (more…)

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Central Bank Increases Policy Interest

Tightening the monetary policy again, the Mongolbank increased the policy interests by 1.35 points up to 9.75 percent. The policy interest of the Central bank is presented by securities interest of the Central Bank weekly and it serves as the interbank guide interest. On November and December 2007 policy interests have been increased twice by 1 point respectively up to 8.4 percent. The primary reason for increasing interests lies in slowing down speed of monetary and loan growths and decreasing inflation. Monetary policy has been tightened since mid-2007, growth speed of monetary supplement elements has been slowed down and its amount is not increasing, however influences of factors contributing to inflation is still strong. (more…)

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Newly Appointed Ambassadors were Requested To Protect Their Citizens

Prime Minister Bayar received and met with Mr. O.Nyamdavaa, the ambassador to Poland, D.Bayarkhuu, the ambassador to Egypt, P.Gansukh, the ambassador to Singapore, the newly appointed ambassadors. The Prime Minister made the request to pay attention on reputation of the diplomat service, disseminating positive information about the Mongolian foreign policy, attracting foreign investment and permanently update the information about their residing countries.

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Owner Decides the Faith of His Own Property

The draft law on amending the Mineral Law of Mongolia will be discussed at the extraordinary session of parliament of Mongolia, March 25 2008. MPs are expressing their position towards the draft law.

Ts.Munkhorgil:

The Mineral Law of 1997 was the best law to fit in the Mongolian situation.

The draft law on amending Mineral Law of Mongolia is about to be discussed at the moment.

If the law is not amended and takes effect longer, it is good. Business people say that the legally stable and transparent environment is the biggest issue. Lower tax is the next important issue. For the mining industry that requires the long term partnership and multi-million dollar investment, the stable law is vital issue. People are criticizing the Mineral Law of 1997. But I think it is the best law to fit the Mongolian situation. According to this law, everyone who can afford it, can acquire the license independently from the Government, Ministry and Ministers. The only mistake was the loss of control and tax imposition on these license sale and purchase. (more…)

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Project of USD 285 Million Is Urged

The U.S. Millennium Challenge Account has signed on an agreement to grant aid of USD 285 million to Mongolia. A total 4 projects are to be implemented with this money in health, education, registration and railways sectors. With reference to it, Mr. Robert Reed, Mongolia Country Director, MCA visited Mongolia between 7 and 14 of this month to start preparation for realization of compact agreement, concluded between USA and Mongolia. He met with Mr. Mark Minton, Ambassador Extraordinary Plenipotentiary of the United States to Mongolia and the U.S. Embassy staff. A progress of creating sedentary position of MCA in the Embassy structure has been started. (more…)

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Mongolian Railway Is Making Reform

Few days ago, the Ulaanbaatar railway organized open door day in order to listen people’s comments and to improve the service to public. In the frame of this arrangement they operated call-free phone and got people’s comments. Also teachers and students of Railway institute will carry survey called “Railway service-to customers” from passengers of all direction trains. Its purpose is to improve their service. They located a computer in the ticket selling hall and introduced new service that customers can take information about ticket selling. And also V.Otgondemberel, head of the Ulaanbaatar railway went to Zamyn Uud in order to coordinate luggage transportation block. D.Jigjidnyamaa, vice head who is in charge of transportation issue, and B.Lkhagvasuren, head of transportation of freight department, are gone with him. (more…)

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