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Appendix 2 of the resolution of the State Great Khural: MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF OYU TOLGOI COPPER-GOLD DEPOSIT

MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF OYU TOLGOI COPPER-GOLD DEPOSIT
1. The agreement must be built in accordance with the effective law and regulations of Mongolia
2. To study the possibility of inserting the provision to allow the Mongolian side to own up to 50%, but starting from 34% and additional take over for the Mongolian side when the initial investment is compensated.
3. To study the alternatives of making the investment agreement based on the product share principle.
4. To agree upon 34% direct ownership of a stock holding company to the Mongolian side and its investment to be replaced with the taxes, payments, fees, dividend and loan types. (more…)

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Appendix 1 of the resolution of the State Great Khural: MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF TAVAN TOLGOI COAL MINE

MAIN PRINCIPLE AND GUIDANCE OF MAKING THE INVESTMENT AGREEMENT ON JOINT EXPLOITATION OF TAVAN TOLGOI COAL MINE
1. The agreement must be built in accordance with the effective law and regulations of Mongolia
2. To study the possibility of securing the Mongolian side ownership in a stock holding company which will be established on Tavan Tolgoi coal mine, not less than 51%.
3. To study the alternatives of making the investment agreement based on the product share principle.
4. To effectively implement the payment of mineral resource exploitation, its calculation and distribution in accordance with the mountain-geological condition and reserve size of the deposit, as stated in the provision 47 of the Mineral Law of Mongolia and to receive the certain portion of the payment of the mineral resource exploitation and taxes in advance. (more…)

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Draft 2. The resolution of the State Great Khural

To adopt main principle and guidance

Considering the current decline of some commodity price and share price of mining companies due to the world financial crisis and tendency of decreasing investment in the mining sector and with the purpose of preventing the risks and problems that can evolve in the future, to unlock the obstacles in realizing and exploiting  strategically important major mining deposits, to initiate the negotiation with the investors in order to form the opportunity and resource to provide their exploitation income to our citizens and accelerate time to sign the investment agreement, hereby the State Great Khural issues this resolution, according to the provision 43.1 of the Law on the State Great Khural of Mongolia, as follows: (more…)

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Draft 1. Resolution of the State Great Khural

To reject draft laws.

According to the provision 22.5 of the law on rule of the State Great Khural of Mongolia and provision 43.1 of the Law on the State Great Khural, The State Great Khural resolves:
1. To reject a draft law to amend the Mineral Law of Mongolia, presented by MP Ts.Damiran and Ch.Avdai and other 13 MPs on March 12 2008 and a draft law to amend the Mineral Law of Mongolia, presented by MP E.Bat-Uul and R.Erdeneburen and other 2 MPs on April 22 2008, with reason of the majority of lawmakers’ term is expired. (more…)

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The Mongolian State will own 34% of Oyu Tolgoi and 51% of Tavan Tolgoi

Yesterday, parliamentary group of MPRP and DemParty discussed the comments and conclusion of the working group of drafting amendment in the Mineral Law of Mongolia. The working group presented two draft alternatives. First alternative is to withdraw two drafts, because of the fact that the most of the lawmakers weren’t re-elected.  The second alternative is not to change the current Mineral Law of Mongolia and to sign in the investment agreement on Tavan Tolgoi and Oyu Tolgoi. (more…)

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Minister for Finance was told to finalize the price prediction of copper commodity

The Standing Committee on Budget of the State Great Khural has discussed about the budget of year 2009. MPs exchanged their opinions and discussed about the budget of the Mongolia Development Fund. As it is impossible to calculate budget revenue of year 2009, the Ministry of Finance has developed seven alternatives. Standing committee on budget has agreed to pick one of these alternatives to estimate the budget revenues and costs of year 2009. Therefore the Minister for Finance was instructed to finalize the price prediction of copper commodity by tomorrow morning.

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Real estate sale have slumped by 50%.

Real estate exhibition has opened its door at the National park of IT. There are about 20 companies taking part in this exhibition. As Commercial Banks have stopped housing loan, the sales of properties have dropped by 50%.  The average price of an apartment in the market is costing around $750 per square meter and the upper class apartments are costing around $800-900 per square meter. Some companies went bankrupt as sales of properties are slumping. Generally, Construction companies are facing real survival situation. During the exhibition housing soft loan will be granted to the interested guests and visitors.

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736.8 thousand shares were sold at the MSE

736.8 thousand shares of 23 SHCs were sold at the MSE  totaling 147.6 million MNT trade. 338.9 thousand Remicon shares were also sold at the primary market.  270 thousand shares of ‘Hermes center’ were sold and it was most actively traded share at the stock market.
In comparison against the previous day’s trade, Anod Bank share were decreased by 14.83% and, APU, “Tavan Tolgoi” and “SBB” shares were decreased by 15% respectively.

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S.Oyun: We rely on silver and bronze opportunities

MP S.Oyun, a member of working group of drafting amendment in the Mineral Law of Mongolia, has her words regarding the current issues and mining legislation development.

Q: Working group held several meeting, but it had not that satisfactory results.
MP S.Oyun: We met several times after studying four or five drafts for the Mineral Law of Mongolia, presented since 2006. In year 2006, the Mineral Law of Mongolia has provision that the Government of Mongolia to own up to 34% in strategic deposits. After that there were talks about increasing it to 51%. Also provisions on agreement in dividing product and windfall tax change were added. Meantime, world economy is undergoing the financial crisis and the commodity price is decreasing 2 months in a row. Actually, commodity price is surging, therefore mining business is risky. Members of the working group are discussing seriously about 51% ownership of the Government. (more…)

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Dr. Graeme Hancock, senior mining specialist for the World Bank’s Oil, Gas and Mining Policy Division: Mongolian banks are potential

Dr. Graeme Hancock, senior mining specialist for the World Bank’s Oil, Gas and Mining Policy Division has his opinion towards the Mongolian economy and mining.

Q: Can you share the goal of Discover Mongolia Forum and its result?
Dr. Graeme Hancock: Forum set forth many targets. The main issue was the investors to summon in Mongolia and exchange their experiences and comment on the expecting mineral law of Mongolia. As the result, they get to know about drafting the mineral law progress and found out that the investment agreement achievements.

Q: How would you evaluate the Mongolian mining sector?
Dr. Graeme Hancock: We see copper price fall recently. There are several unclear things in the Mongolian mining sector. But they will be much clear with the expecting Mineral Law of Mongolia. As for today, it is important to reach common understanding on cooperation with the Government of Mongolia. I think it is closer now. It is hard to evaluate right at the moment. (more…)

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