Prime Minister S.Bayar: The Session Was Suspended But the Issue
Session is suspended due to the Democratic Party. It is heard that you have frustrated?
It is pity that ad hoc session is suspended. But the issue is not suspended. If ad hoc session is not available for the adoption, then, I believe that regular session can solve move the issue forward.
Ts.Elbegdorj, Chairman of the Democratic Party and you made joint statement about the Mineral Law. Is it over now?
The statement should not be over. It will be implemented. The joint statement has not only economic impact but political too. 51/49%, the share of the strategically important project is important.
Do you have conflict of interest inside of your party?
No, we don’t have. There were some disagreement on certain issues but it is healthy thing to have variety. As for the issue, we have common consent.
There was the issue about the Government of Mongolia or the Mongolians.
The Cabinet Meeting has discussed this issue several times and agreed to give the following comment to the draft law. The government of Mongolia will have 51% of the strategic deposits which was explored by the Government fund and the foreign investor’s share will not exceed 49% of the deposits which were explored by the private funding. The Mongolian Government together with its domestic investors will hold 51%. I understand that Mr. Elbegdorj meant the Mongolian Government, companies and people.
The issue of Mineral Law is the key topic of the upcoming election. Some parties think that “…if the law will be adopted, then your Government will sign the agreement and gain reputation. Therefore, we don’t need to rush to adopt it…” What is your point of view towards it?
We should make progress in this issue. We are losing so much time. Nobody can anticipate and tell exactly what will be the price of mineral, resource, food and commodity after three years. We are witnessing that the world economy is going to the much surprising direction. For example, Oyu Tolgoi project budget was 2.7 billion US$ and it became 4.3 billion US$ now. Another example, we are losing 1 million US$ per day as long as we don’t launch Oyu Tolgoi project. It is almost 400 million US$ and 500 billion MNT per year. Not only Prime Minister and Government, but everybody shall strive to distribute some of the profit top people of Mongolia when time is favourable for “grant of the nation”.
It is obvious not to rush and make incomplete work. On the other hand, it cannot be postponed or lingered for long. It is very funny to say that the signature of agreement is guarantee of the victory of the election. Moreover, the agreement with foreign investor cannot be signed at any time when we want. In order to sign the agreement, the legal environment and relevant laws must be determined and well established. There is no such an act to sing agreement without legal fundament. If there is such fear exists, then we can adopt the law and announce the signature after the election!
In order to avoid such suspicious thoughts, why the effective date of the law can be announced in advance such as July 1 2008 and the next parliament and Government?
The preparation of the agreement will take several months, according to the adopted law. We lose precious time again. But it’s much better alternative than lingering long without parliamentary discussion or adoption.
People explain differently about your pushing. They say “it is because of your visit to Russian Federation and Asgat deposit and it is a part of your gift to Russians”.
It is again senseless doubt. How comes the amendment will become the gift for the foreigners. If we like the word “gift”, then it will be the gift for the people of Mongolia.
Our government proposed the draft agreement to the parliament. Unfortunately, it was not discussed. There was 50/50 ownership in the agreement draft. Anyhow, whenever in the future, we will exploit Asgat with the Russian side. It will be not 50%, but 49% for the Russians. Does it look like a gift?
On the other hand, developing beneficial cooperation with neighbours and foreign cooperation development under the world standard are good for the fundamental interest of Mongolia. The Russians are interested in investing in mining sector. Not only Russians but world powers are interested in Mongolia. We should exploit every single opportunity to develop mutually beneficial cooperation during this period where Mongolia is in the limelight of the world. It is the responsibility of the Government of Mongolia on behalf of the people of Mongolia. But we shall prepare our legislation for the mining industry clear, understandable and attractive for the investors. It is no good in changing the laws unexpectedly.
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