Daily Business News Mongolia

Government Takes Main Resource of Cocking Coal

And research is undertaken what to do with remaining parts

Issues related to Tavantolgoi have been decided after being discussed for several times but draft law of amendments to the minerals law got stuck. Anyways, social movements and those who are interested in nomination to the coming election give high importance to it, holding press conferences, blaming some people whilst the amendment issue has not been decided yet. According to the negotiation between the Government and Energy Resource, 93.6 percent of Tavantolgoi is transferred to state and remaining 4 percent is to the company holding the licenses. Some companies, holding remaining percent of the deposit might be in a condition to negotiate with the state like Energy Resource, getting little of the deposit. The Government suggested the Ministry of Industry and Commerce to formulate proposals on how to solve issues related to local and foreign companies. (more…)

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Kh.Narankhuu: Mining Site of Tavantolgoi Trans Might Be Transferred

We are speechless if Russia brings out the issue of Asgat during the visit of PM to Russia

We got views of Mr. Kh.Narankhuu, Minister of Industry and Commerce.

Prime Minister noted that Tavantolgoi would be taken into state ownership 100 percent. As a result of negotiation, 4 percent was left to Energy Recourses.

It was difficult to directly take the licenses from Energy Resources, which acquired licenses and invested according to laws of that time. It was necessary to be flexible towards the issue. Tavantolgoi has great resources of 6.4 billion. According to latest estimation its resource reached over 7 billion. Resource of cocking coal can be found in the midst of the site. There are 2 or 3 sites that have guesstimated resource outside the core. One of them is Ukhaa khudag left to Energy Resources. The part, which is cocked 10 times expensive than ordinary coal, has been transferred 100 percent to state ownership. (more…)

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Donald Kerry: This Draft Might Scare Investors Off

With relevance to draft law on amendments to minerals law, we got views of Mr. Donald Kerry, Staff of C-consultancy LLC of the United States who came for research in mining sector of Mongolia at the request of Barrick Gold Corporation, one of mining giants in the world.

You’ve mentioned that you undertake research in mining sector of Mongolia. Could please give us some detail on it?

It is good that world companies are interested in investing in Mongolian mining sector. One of them is the Barrick Gold operation in your country. I’ve just happened on the time to make amendments to the minerals law. We are studying Mongolia’s legal environment. As for me, I carry out researches only. (more…)

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Investment Is Forbidden or Pay 68 Percent Tax

Some parliamentarians boasted, “It is not so high tax rate. It should have been 80 percent and it is rather low. Miners should not have to worry about.”  

Starting from the previous year, Mongolia began to implement Windfall tax law. Thanks to taxations, state budget tends to exceed 2 trillion MNT. As assumed by politicians, copper price in the world market will be USD 6800, generating MNT 309.5 billion to state budget from Erdenet enterprise. Gold price is increased up to USD 590 and 20 tonne gold is to be mined of which gold to be obtained by Boroo gold company is excluded. MNT 53.8 billion is to be generated from windfall tax to be imposed on remaining 13 tonne gold to the state budget. (more…)

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Urged To Exploit Asgat Deposit

Prime Minister Bayar has visited to Tsagaannuur village of Nogoonnuur soum, Bayan-Ulgii aimag on March 24 2008.

During the visit local authority, border authority and free economy zone of Tsagaannuur soum reported about their activities.

Local community members are urging Prime Minister to move forward on exploiting Asgat silver mine, to halt scandalizing around the deposit issue and to protect the interest of the Mongolians. Ultimatum letter to accelerate the procedure of exploitation and to sign the investment agreement with the Russian side addressed to Parliament and the Government, signed by 972 inhabitants of Nogoonnuur soum, was handed to the Prime Minister. (more…)

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The Drilling of the Canadian Company at Khuduu Aral Has Been Stopped Again

Canadians drilled almost half of Khuduu Aral

The Canadian “Sheiman Resource Mongolia” company started drilling work for its oil exploration operation at Khuduu Aral, the territory of Delgerkhaan soum, Khentii aimag. The company breached several laws and provisions and it was stopped by MP B.Baterdene and “Khuduu Aral” movement together with local community members. But on March 21 2008, L.Sukhbuyan, the Head of Oil Department of MRPAM, and other officials threatened the Governor of soum and re-started drilling work, by imposing penalty for stoppage period. Previously, local community members were demonstrating and blocking the drilling vehicle. Now, the company is drilling even in the night. (more…)

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Chairman of the Board of Energy Resources LLC J.Odjargal: Since It’s a Major Deposit, We Respect State Policy, Being Patient

Yesterday, on behalf of the Government of Mongolia, Kh.Narankhuu, Minister of Industry and Commerce signed with Energy resources company on the agreement to transfer 96 percent of Tavantolgoi deposit to state ownership. During the event, we got views of Mr. J.Odjargal, Chairman of RGC of the Company.

Could it be beneficial for the company as the state takes 96 percent of Tavantolgoi deposit?

Energy resources company has been keeping the license of Tavantolgoi deposit since 1999 as the property of Mongolia. We have been checking license fees in conformity with laws, taking business risks at the time when coal price was low and the project was inefficient. (more…)

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Deal With Energy Resources Is Negotiated

A task group, formed by the Government of Mongolia to negotiate and deal with Energy Resources LLC, owner of special permission of Tavantolgoi deposit, on December 2007, held nine negotiations with the Company. As a result of the negation the parties reached on a consensus to transfer Tavantolgoi deposit to state as follows: (more…)

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The Arabian Billionaire Visited To Mongolia

Delegates, lead by Prince of Saudi Arabia Alwaleed Bin Talal Alsaud and Princess Amira, paid one day visit to Mongolia on Tuesday evening, March 18, 2008 and departed yesterday. He is visiting to the Asian countries. During his stay in Mongolia, he attended to the President of Mongolia and met with The Prime Minister of Mongolia.

Prince said that his main purpose is to invest in Mongolia, especially in tourism industry. The President replied “Tourism is one of the main industry of Mongolia. It is important to develop infrastructure in countryside and build power stations.” The President also granted his award of the Honorable Medallion of the 800^th anniversary of the Great Mongolian State. (more…)

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Request to Attend the ITB as a Guest is Submitted

The world’s leading travel exhibition was held in Berlin, Germany last week. Per year an average of 10 thousand companies attends and 180 thousand people visit the exhibition, which has been traditionally organized since 1966. This time, representatives of 11 companies, headed by Mr. D.Batkhuyag, Deputy-Minister of Road, Transport and Tourism attended the exhibition, advertising and promoting Mongolia. They jointly held a press conference with Mongolian Embassy in Germany and had national art performances played for Germans. The main feature of the exhibition is its tradition to have one country attends the event as a guest. Promoting the guest country in German for a whole year freely, this event is of great significance as well. Therefore many countries compete for this permission to be a guest. (more…)

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