Copper price is decreasing rapidly. It said that it set the record of downfall in last 22 years. According to the LME, cash buyer’s price for copper is 5030 US$. Just in month’s time, its price was decreased by almost 2000 US$. Mongolia is benefiting enormously from 68% windfall tax in last two years. As for the first 8 months, 180.6 billion MNT of the Mongolia Development Fund and its 177.2 billion came from windfall tax or copper sales.
Our economists, who composed budget of this year, calculated that if the copper price is 4500 at minimum, then windfall tax can be imposed. So if copper price will decrease again another 500 US$, then we will not have windfall tax and it will be automatically canceled.
If situation will continue according to this scenario, in 1 month time we will not have windfall tax that bound the development legs of Mongolia and “the last Mohican” or true benefiter of the windfall tax is goat, one of the main contributors of desertification of Mongolia, but not to people of Mongolia.