P.Ochirbat, the first president of Mongolia: Economy is set to be dependant only on one factor and making it weary.
P.Ochirbat: Once we stated 34% in the law, we have to follow the law. Actually, it is not good to promise or acquire 34% when we don’t have money at all, especially in this time of crisis and recession. 34% is about a billion US$. We should spend this money on infrastructure and other industries. But we are all about to give away everything we have on mining industry like a placing bet. This means we are making our economy vulnerable and wearing off the immune of our economy. Our economy can’t be in crisis or slump when gold or copper price slumps.
N.Dashzeveg: We should use Erdenet case, where we acquired 34% without spending a single coin.
34% is small number for Mongolians. Mongolian Government claim 34% if copper price is lower than 2500 US$. But it if it is higher than 3500 US$, we should own 51%. In this case we don’t need to impose windfall tax on it.
I have my opinion to follow Erdenet case to acquire 51% without paying single coin. There is a market rule that if one owns 34%, he or she can’t get dividend, but instead, if one own higher than 51%, he or she will get dividend. Also we are talking about establishing international company, if we own 34%, we will lose the chance of establishing it.