Daily Business News Mongolia

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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Will Issue an Order to Regulate Private Coal Miners

Government decided to issue an order “On regulation of citizens operation of privately mining of Nalaikh’s coal”.

In order:

-Organize registration of citizens who privately mining Nalaikh’s coal and work them by contract with companies which have usage license, and take arrangement to follow the safe operation rules and norms within the frame of law

-Close the borehole causing by privately coal mining, and take arrangements which followed in order to save industry and road works from underground, soil erosion, and ruin (more…)

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Bank Settlements In Few Seconds

The Mongolbank jointly with Golomt, KHAAN and Bundesbank-Central Bank of Germany held a consultative meeting for staff of bank settlement, accounting and information yesterday. It’s been a decade since the tradition of transferring any settlements from hand to hand, confirming with documents. Thanks to e-clearing system, any difficulties related to settlement have been erased and settlements, which used to take a month, now take only 1 to 3 days. Also it is possible now to calculate cash flow of the banks actually and to check assets management. A system of corporate account of state fund has been brought in since 2004 and Settlement Center was established under the Mongolbank in 2006. Today interbank settlement below MNT1 million is remitted within few seconds to the end customer through the Center. (more…)

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Z.Enkhbold: Beneficial Choice-Hope They Won’t Reject

MP Z.Enkhbold, who engaged in task group, representing DP has his saying.

MPRP and DP have agreed upon Mongolia’s ownership of less than 51 percent of deposits of strategic importance. Could you provide us some details?

51 percent can be given to not only state but also Mongols, however underground minerals shall be 100 percent Mongolian property. We think that 49:51 of Erdenet is a good example. (more…)

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Ts.Damiran: Not Only State But Mongolian Citizens Could Own 51 Percent

We had some details from MP Ts.Damiran on a draft of Minerals Law. He is one of MPRP members, representing the party in the task group to formulate the draft law.

What is the primary concept of the draft law?

Over 10 articles of the Law have been amended in draft. The task group, comprising of DP and MPRP, jointly developed the general concept of the daft.

What are the amendments?

We made the term strategic deposit, which was vague in meaning in the law, clear. Also we defined the location, resource and efficiency of strategic deposit. Moreover, it is stated in the draft to grant minerals licenses in 3 levels. Issuance of mining license shall be discussed and decided by the Government. Ministry of Industry and Commerce shall grant ordinary licenses. In addition, participation of foreign companies should not exceed 49 percent and Mongolian part must own more than 521 percent, according to the draft. (more…)

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