Chairman of the Board of Energy Resources LLC J.Odjargal: Since It’s a Major Deposit, We Respect State Policy, Being Patient
Yesterday, on behalf of the Government of Mongolia, Kh.Narankhuu, Minister of Industry and Commerce signed with Energy resources company on the agreement to transfer 96 percent of Tavantolgoi deposit to state ownership. During the event, we got views of Mr. J.Odjargal, Chairman of RGC of the Company.
Could it be beneficial for the company as the state takes 96 percent of Tavantolgoi deposit?
Energy resources company has been keeping the license of Tavantolgoi deposit since 1999 as the property of Mongolia. We have been checking license fees in conformity with laws, taking business risks at the time when coal price was low and the project was inefficient.
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A Team of International Consultants Are to be Invited
The government meeting decided it was proper to select and conclude an agreement with a team of international consultants, which would advise and consult on use of strategic deposits to the Cabinet, according to regulations and organize it within April. The selection shall be made in conformity with laws and regulations and advises and consults should be taken on issues related to legal environment of Oyutolgoi and Tavan tolgoi deposits.
Deal With Energy Resources Is Negotiated
A task group, formed by the Government of Mongolia to negotiate and deal with Energy Resources LLC, owner of special permission of Tavantolgoi deposit, on December 2007, held nine negotiations with the Company. As a result of the negation the parties reached on a consensus to transfer Tavantolgoi deposit to state as follows:
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Director General of the U.S. Foreign Service Visits Mongolia
U.S. Embassy Press Release
March 19, 2008
Ambassador Harry K. Thomas, Jr., the Director General of the U.S. Foreign Service, visited Mongolia March 18-19. Ambassador Thomas is the top State Department official for human resources, and met with Mongolian and American staff and family members at U.S. Embassy Ulaanbaatar.
He called on State Secretary for Foreign Affairs Bekhbat, and the two talked about comparative personnel systems and training. Ambassador Thomas exchanged views on U.S.-Mongolia relations with the Foreign Policy Advisors to the President and Prime Minister and the Foreign Ministry’s Deputy Director General for the Americas, Africa, and Middle East.
This was the first visit of a Director General to Mongolia.
The Arabian Billionaire Visited To Mongolia
Delegates, lead by Prince of Saudi Arabia Alwaleed Bin Talal Alsaud and Princess Amira, paid one day visit to Mongolia on Tuesday evening, March 18, 2008 and departed yesterday. He is visiting to the Asian countries. During his stay in Mongolia, he attended to the President of Mongolia and met with The Prime Minister of Mongolia.
Prince said that his main purpose is to invest in Mongolia, especially in tourism industry. The President replied “Tourism is one of the main industry of Mongolia. It is important to develop infrastructure in countryside and build power stations.” The President also granted his award of the Honorable Medallion of the 800th anniversary of the Great Mongolian State.
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The Mongolian-American Business Forum Will Be Organized
In April 2008, the business forum will be organized in Washington D.C. by the Embassy of Mongolia in United States, Department of Commerce of United States and Foreign Investment and Foreign Trade Agency of USA. Interested companies can be registered at FIFTA of Mongolia until March 28 2008.
The main focus of the forum is the presentation of projects of the Mongolian companies to American investors and the introduction of the Mongolian business environment and current situation. Also there will be a meeting to increase the American investment into Mongolia, increase of varieties of export products of Mongolia to USA and importing the American tech and equipment into Mongolia.
Request to Attend the ITB as a Guest is Submitted
The world’s leading travel exhibition was held in Berlin, Germany last week. Per year an average of 10 thousand companies attends and 180 thousand people visit the exhibition, which has been traditionally organized since 1966. This time, representatives of 11 companies, headed by Mr. D.Batkhuyag, Deputy-Minister of Road, Transport and Tourism attended the exhibition, advertising and promoting Mongolia. They jointly held a press conference with Mongolian Embassy in Germany and had national art performances played for Germans. The main feature of the exhibition is its tradition to have one country attends the event as a guest. Promoting the guest country in German for a whole year freely, this event is of great significance as well. Therefore many countries compete for this permission to be a guest.
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Open Society Forum Sent a Policy Advice to the Government
STATE EQUITY IN THE MINING INDUSTRY
OPEN SOCIETY FORUM
The Government and the Hural should keep in mind a number of considerations as they move to amend the Minerals Law to impose a requirement of 51 percent equity ownership by the state of all strategic resources.
- By law and the Constitution, the people of Mongolia already own 100 percent of all strategic resources. What the Hural and the government must do is to provide the investment framework to develop those resources in an orderly and prompt fashion. If Mongolia wishes to develop any of its resources, rather than leave them in the ground, then however structured or however labeled, Mongolia must establish an investment framework that will attract the necessary capital, management skills, and technology for such development.
Read the rest of this entry »Draft Law on Amending the Mineral Law of Mongolia Will be Discussed Next Week
Parliament will hold an ad hoc session next week to discuss draft amendments to the minerals law, which the government wants quickly approved. The Speaker of the parliament, D.Lundeejantsan, announced parliament will meet at 10 am on March 25, with pre-discussion meetings the day prior amongst related standing committees and party councils. According to the draft amendments, which appear set to have bi-partisan support, the Government will be entitled 51 ownership of strategically significant mineral deposits explored by state funding, or more than 34 percent if explored by private funding. The Government earlier withdrew a draft investment agreement with Canadian invested Ivanhoe Mines Mongolia Inc, in a bid to increase its share of a mining project. The agreement regarded Oyutolgoi, a large-scale copper and gold project. The new amendments will redefine strategically significant, and has changed the phrase “up-to” to “minimum” on ownership percentages.
Read the rest of this entry »Pure Water Resource in Asian Countries Comes to an End in 10 Years
The United Nations have announced every March 22 of each year as the World Day of “Water protection”. In prior to this event, Mongolian Green party informed the journalists yesterday on proper use of water. They warn that rivers were polluted and pure water shortage is in scene due to illegal activities of those in power. According to the research of scientists, pure water resource in Asian countries comes to an end by the year 2018. Thus it is said that the state should attach attention on drinking water instead of giving strategic significance to minerals. Due to lack of proper policy on using pure water reserve, rivers and lakes are polluted much.
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