Daily Business News Mongolia

N.Enkhbayar: I have desire of achievements and creation instead of ambition

President N.Enkhbayar held a meeting with media representatives. This interview is an excerpt from his full interview.

We should work carefully on mining industry

Q: What is you point of view regarding the exploration licenses that are granted all over the country.

President Enkhbayar: We should be very careful on mining industry. We can make list of natural reserves and parks exactly the same way we made on strategically important deposits. It is the same logic that why we can’t make list of places that have to be protected if we made a list that can be mined. The list can include widely respected places such as Bogd Mountain, Khuvsgul Lkae, Altai Tavan Bogd and so on. Mongolia can’t fight against desertification. We can fight in wider extent including our neighbors and region. We can fight against yellow dust together with South Korea, China and Japan. (more…)

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Kh.Narankhuu: Government money shouldn’t lie idly; it must be into the market circulation.

MPs are divided regarding the issue of placing state money at combanks. MP Kh.Narankhuu has his words regarding this issue.

Q: What is your opinion regarding the decision of placing money at combanks?
MP Kh.Narankhuu: From one hand state money shouldn’t lie idly, but it must be into the market circulation. But it is better be at combanks. But we are not talking about petty saving deposit money at combanks. Mos of the countries are affected by the crisis. Their administration made decision to strengthen banking system. They allocated certain fund at combanks and it was distributed as investment. For example, USA is about to provide 60 billion US$ for its car makers. Also China and Russia are announced to provide a trillion US$ for their light industry, food industry, energy, infrastructure and agriculture industry. (more…)

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The impact was harsh due to the late response from Mongolia

MP O.Chuluunbat has his views in the recent development of crisis and economy recession.

Q: Some said that the world crisis has nothing to deal with Mongolia. But it affects our daily life.
MP O.Chuluunbat: World economy recession and crisis is taking effect on us. Its impact is harsh because our reaction was so late. Money loan was halted since April and May and it decreased affected in the business and economy activities by 30-40% decrease. Actually, the business activity in Mongolia i carried out advances based on the loan and credit. If one company gets loan it doesn’t mean that its director or owner uses it, but it is used in business activities that can help in living of many individuals and companies.
Almost every company has network of payable and receivables from each other. (more…)

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D.Zorigt, Minister for Mineral Resource and Energy: We are not in crisis but we are in pending situation

D.Zorigt, Minister for Mineral Resource and Energy, has his views in the time of economy recession.

Q: You were the main surprise within the Cabinet Ministers when the new government was formed. How did you start your work?

D.Zorigt, Minister for Mineral Resource and Energy: I started my work to get acquainted with my sector. Mineral sector is my field of experience and knowledge, but energy is not. Once the government trusted me to manage this sector, so I have no ways to step out. Being as a young professional, I had gone through some objections and reactions. Sometimes I had time to hesitate with myself. Previously, I was working at the Ministry of Trade and Industry and worked on Oyu Tolgoi negotiation and preparation of papers up to the presentation to the State Great Khural. (more…)

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MP Kh.Narankhuu: We should worry about tomorrow instead of today

MP KIh.Narankhuu has his opinion regarding the mining industry and its recent development.

Q: Information of the working group was heard to the Standing Committee on Economy. Being as the Minister in charge of the Mineral Resource, what is your position in this environment?
MP Kh.Narankhuu: The working group presented its conclusion in the time of establishment of Coalition Government and new environment of crisis.
The Mineral Law of year 2006 was good law that is suitable for the situation. We issued the law that is much free that can attract foreign investment when the copper price was 1560-1750 US$. But many angel investors that are not serious in developing project, but are serious in raising making money on the mining projects, poured into Mongolia. It was one of the main reasons of stirring such a mess. It created negative feeling in the society. Also those many investors disappeared when the commodity price feel. (more…)

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Kh.Badamsuren: We will protect and save the mining industry from crisis

MP Kh.Badamsuren, the head of the working group on drafting the amendment of the Mineral Law of Mongolia.

Q: Recently, There are some talks about uraium?
MP Kh.Badamsuren: Recently, media is interested in uranium issue. Thanks to the geological research and exploration, Mongolia has quite good reserve of uranium. It will increase in the future. There are three deposits which are included in the list of strategically important deposits in Dornod aimag. Uranium demand is relatively high in the world market. We have chance to exploit our uranium reserve and we have such a demand also.
Radio active substance and uranium issue is under the control of the international organization in the world. Therefore, Mongolia needs to determine its state policy on uranium and form its legal environment. The Government of Mongolia made decision to establish the Nuclear Energy Agency and has independent organization in charge of this issue. It is real step and we need to advance more rapidly and swftly in this field. (more…)

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MP Ch.Khurelbaatar, Head of the Standing Committee on Budget: Budget has a big chance to be changed in the future.

Q: The State Budget has loss of 6.1%of GDP. What was the main factor of such loss in the budget?
MP Ch.Khurelbaatar: This budget was approved in quite decisive period of crisis and newly established parliament. It can be said that this crisis situation affected the budget. Also some measures were inserted in the budget in relationship with the crisis. Therefore, the total budget loss is 395 billion MNT or 6.1% of total GDP. But the state budget current balance has profit of 300 billion MNT. The current balance is the index of the state has savings for its creation from the income. Therefore, current balance of 300 billion MNT says that major part of its budget loss is because of the investment and creation. (more…)

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MP D.Gankhuyag: Foreign aid and loan depend on the budget loss.

MPs have their voice on the approved budget

Q: Economists criticize the budget. Approval of budget was because of the world financial crisis or did the Ministry of Finance work badly?
A: The draft law on budget was presented without consideration of financial crisis and copper commodity price fall. World financial crisis hasn’t had so much effect on Mongolia, but it severely affects the foreign direct investment in Mongolia. If the copper commodity price remains stable, Mongolia Development Fund would provide almost 40% of the Mongolian State budget. Today’s situation suggests us to adjust the budget prediction down to the earth. The expense decreased by only 50 billion MNT. (more…)

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B.Bayarmaa, Leader of “Khuvsgul Ocean Owners” movement: MP Batj.Batbayar exceeds its power on phosphor deposits in Khuvsgul aimag.

MP Batj.Batbayar’s son B.Batkhishig acquired 15 licenses in the phosphor deposit area.

B.Bayarmaa, Leader of “Khuvsgul Ocean Owners” movement, local movement which is opposes this ownership, has her words.

Q: Local people demonstrated against Burenkhaan phosphor deposit exploitation. But its licenses were issued. How many companies own this deposit licenses?
A: NGOs of Khuvsgul aimag made monitoring in companies which acquired mining and exploration licenses in its territory. Last year 40 mining licenses and this year 290 exploration licenses were issued. Within a year, so many companies took exploration licenses. 119 licenses in Burentogtokh soum, 77 in Alag-Erdene, 45 in Arbulag and 49 in Tunel soum were issued. (more…)

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MP Kh.Narankhuu: If this measure is not taken, the outcome will be much worse.

Placing 220 billion MNT of Mongolia Development Fund at commercial banks is under strong criticism. About 61.9% of total voters of “Unuudur” daily newspaper readers said it was wrong decision. Let’s find out what is the position of lawmakers in this regard. They answered to the following two questions and are:

1. Do you support the operation of placing some fund of Mongolia Development Fund at commercial banks?

2. How to protect from the risk that may arise? (more…)

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