Mongolia Business and Mongolian Daily Business News

MP D.Zagdjav, D.Batbayar proposed draft law on Limited Casino to Speaker D.Demberel. Casino business is soaring around the world and our two neighbours are allowing limited casinos in certain zones and areas. Neighboring regions of our neighbor countries don’t have any casinos or gambling centers, which allows Mongolia to flourish such businesses. Law initiators believe that it will contribute to the Mongolian economy and revenue.

One percent of casino income will be collected into the “Good Will” Foundation, a social welfare fund. The casino is only open to foreign nationals and the Government of Mongolia will own certain part of the casino.

Hungarian Prime Minister Gordon Bajnai and his Mongolian counterpart Batbold Sukhbaatar discussed how to increase economic cooperation and strengthen ties between the two countries on Wednesday in Budapest. The meeting coincided with the 60th anniversary of the two countries’ establishment of diplomatic relations.

PM S.Batbold, on his first foreign trip since becoming PM in late 2009, said it was extremely important for Mongolia to build ties with the European Union. Read the rest of this entry »

Prime Minister S.Batbold informed that Mongolia will pursue policy to own Tavan Tolgoi deposit 100%. Faith of Tavan Tolgoi is set to be decided during the spring session of SGK.

After this notice, there was fear of who would be interested in Tavan Tolgoi deposit accepting an operator’s status. The government said that interested bidders will not own share or equity of the deposit, but they will pay the payment for mining. But Minister D.Zorigt is confident that interested parties would be interested in the project, because such deals are common in the mining world. Read the rest of this entry »

Nuclear Energy Law implementation and enforcement is not satisfactory. The Cabinet Meeting discussed the enforcement and implementation of the Nuclear Energy Law of Mongolia, during the irregular meeting of Cabinet Ministers. Uranium license holding foreign companies raised notable fund from the foreign capital market. According to the Nuclear Energy Law, if uranium deposit license holder transfers its 5 or more percent of total share, it shall seek approval from the Nuclear Energy Authority.

“…the Government decides to advertise the related laws to the public in order to raise awareness. Because it is important that the mining companies to know that if any uranium license holding companies try to transfer its equity of 5 or more percent, they should seek approval from the Nuclear Energy Authority…” it said in its report.

Mr. Claus Roland is appointed as the Director and Country Resident Representative of World Bank for Mongolia He is also in charge of affairs of Republic of Korea and China. Before appointed for Mongolia, he was Country Director for Russian Federation. Mr. Roland is German and has been service for World Bank since 1981, missions in South America, East Europe and Asia.

He was in charge of China since mid 1990s. Mr. Claus Roland will pay visit to Mongolia in March or April.

One of the main priorities of the Batbold’s administration is to decrease the number of universities and reform the educational sector of Mongolia. In the frames of it the government is discussing about erecting campus complex that will meet international standards.

Yesterday, PM S. Batbold familiarized with the operations of the associated officials who were directed to study the matter. Yo. Otgonbayar, minister of education stated that the campus can be erected either in Buyant Ukhaa or Yarmag. USD 300 million is required in erecting the campus complex, and additional USD 45 million in developing the infrastructure. The land and investment issues are planned to be settled within this year, officials reported. Read the rest of this entry »

A working group established by the Security and Foreign Policy Standing Committee of SGK has concluded its examination on Mardai group deposits. MP Z.Enkhbold, Chairman of the Committee, held press conference.

Q: Was illegal issuance of licenses revealed during the examination?

MP Z.Enkhbold: Uranium deposits located in the territory of Bayandun, Gurvanzagal and Dashbalbar soums of Dornodn aimag were explored between 1971-1974 and “Uranium exploitation Agreement in the Mongolian territory” was made between the Government of Mongolia and Soviet Union in December 23 1981. It mined 510.6 thousand tons of ore between 1988 – 1995.

But MRA issued mining and exploration licenses to “Emeelt Mines”, “Western Prospector Mongolia”, “Adamas Mining” companies in the previously mined areas, breaching provision 2.3 of article 17 and provision 1.4 of article 19 of the Mineral Law of Mongolia. It is illegal to issue exploration license in the previously mined areas. After Agreement of Concession was annulled in late 1989 and early 1990, all uranium properties returned to Mongolia. I would like to quote two examples to give you how big scale of work were underwent in the above – mentioned areas; over 40 kilometers of railway to transport small carriers was laid and three horizontal shafts were built. After the Agreement with Russia was annulled, all reports, findings, locations of ore, electrical supply lines and over 130 kilometers long railway was transferred to the Mongolian side free. Over 14 licenses were issued to 4 companies in the previously mined areas. It is much similar to issue an exploration license in the mining area of Erdenet copper and molybdenum mine and then to raise fund at the Canadian Stock Exchange. Read the rest of this entry »

photo courtesy of gogo.mn

Q: Feasibility study of OT deposit was rejected by the Mineral Wealth Council of Mongolia. What was the main reason of rejection?

Minister D.Zorigt: Professionals and experts made comments during the hearing and meeting of the Mineral Wealth Council of Mongolia. Also they put several questions from investors. Upon receipt of the response the approval will be discussed. Working group met with investors regarding the above-mentioned questions on February 5 2010. Investors’ side promised to give detailed explanation on the questions .

Q: It said that total capital investment size increased in the feasibility study by $1 billion. What is your opinion?

Minister D.Zorigt: Initial investment size hasn’t increased. It’s all investment is made according to the investment agreement.

Q: Upon signature of the agreement, the Government will receive $250 million as pre-paid loan. When the second funding will be made? Read the rest of this entry »

D.Demberel, Speaker of the Parliament will pay an official visit to the Republic of Korea with an invitation from National Assembly of Korea. Speaker Demberel will hold meetings with Kim Hyong-O; Speaker of National Assembly, Yu Son Ho, head of the Standing committee on justice and Park Jin, head of the Standing committee of foreign affairs and trade. The both sides will shares views on the bilateral relations and cooperation. The Speaker will visit Jeju Island and will give interviews to TV channels and the press. He will also be received by Lee Myung-bak, the President of the Republic of Korea. The Speaker’s delegation includes D.Odkhuu MP and other members of the Mongolia-South Korea parliamentary group.

photo courtesy of meforum.mn

Yesterday, the Mongolian Economic Forum has concluded and Prime Minister S.Batbold provided speech to the participants.

In his speech, Prime Minister S.Batbold said that “This Forum has shown that there was clear interest and demand of social dialogue on national development with active involvement of the Government, society, and business community and media representatives. The Forum has allowed us the opportunity to strive for the united solution, reach common sense and understanding even we had different views and opinions” I think that we all Mongolians have single goal but misunderstanding towards each other.
The main result and outcome of the Forum is that we reached the perception of encouragement if we discuss about the development of Mongolia sitting together. We discussed 6 main topics with the active participation of the President’s institution, State Great Khural, political parties and social representation. A well known economist Ernando de Soto contributed notable comments for the Forum. Read the rest of this entry »