Mongolia Business and Mongolian Daily Business News

“Mining and geology can’t be separated. But the Government paid much attention on mining sector, ignoring geology one” concluded participants of “The Mongolian Geology and Mineral Forum”. Representatives of 42 companies and scholars attended the Forum, jointly organized by the Ministry of Mineral Resources and Energy, Mineral resource Authority, The Mongolian Mining Geology Association, The Mongolian Geologists’ Association, The National University of Mongolia and Geology School of University of Science. During the forum the legal environment of mining sector was fiercely criticized by the participants. 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.

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 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 »

“19 laws were adopted and 37 issues were discussed by the Standing Committee on Budget” said MP Ts.Davaasuren, Chairman of Standing Committee on Budget during the press conference. The most important laws were General Budget Law of 2010 and Law on Human Development. Mongolia plans to hold its budget deficit within 5% of GDP, according to the agreed program with IMF. Therefore, budget was adopted with deficit of ₮356 billion. IMF gave direction to the Government to keep the deficit below ₮416 billion.
Copper price, the main contributor to the budget revenue, was predicted at $5200 by the Government, but SGK increased it up to $5800. As for today, copper price is $6200 per ton at the market. Read the rest of this entry »

Mr. G.Zandashatar, Minister for Foreign Affairs and Trade received Mr. Kobayashi, Board Director of Itochu Corporation. Mr. Kobayashi has vast experience in the relationship between Mongolia and Japan, leading Economy Committee of Mongolia – Japan, and Itochu has been active in Mongolia over 20 years. Read the rest of this entry »

During the press conference of the Mongolian Economic Forum, media representatives made few questions about forum and other related issues. Officials answered as follows:

Q: Oyu Tolgoi Investment Agreement was signed. But the feasibility study is not completed and reserve is not clearly stated?

Minister for MRE, D.Zorigt: Oyu Tolgoi reserve is approved. It was announced during the investment agreement. It is misleading information. Within 150 days or until April 6 2010, after the signature of the Investment Agreement, Feasibility Study will be discussed. If one reads the agreement, it was clearly stated.

Q: What will be your explanation on your attendance at the ceremony of marking % years of successful trading of Ivanhoe Mines at NYSE? People say it was promoting Ivanhoe Mines.

Minister for Finance S.Bayartsogt: Thanks to Oyu Tolgoi, Mongolia unlocks its development gateway. I believe that a Mongolian ringing bell at NYSE is promotion for Mongolia than Ivanhoe Mines. Over 120 million people, who are active in capital market, business and economy, are watching morning trade opening ceremony. Therefore, it was purely promotion for Mongolia. I don’t want to argue much more because many Mongolians have poor knowledge of stock market. Read the rest of this entry »

Center for International Private Enterprise (CIPE) sends a complimentary letter to Prime Minister S.Batbold in relations with the Mongolian Government announcement of “Year 2010 as the Year of Business Environment Reform”.

The letter states that “… this announcement and initiative will surely support the enterprises in Mongolia and its positive results and outcome will promote and encourage similar initiatives around the world. It is the one example that Democracy in Mongolia eminently develops …” Read the rest of this entry »

Yesterday the Cabinet Meeting was held and discussed several issues such as draft resolution on State Service Structure, SGK draft resolution on oil products, the Government draft evaluation on Casino Law.

Cabinet Meeting didn’t support the Casino Law, initiated by MP D.Zagdjav and others.