Mongolia Business and Mongolian Daily Business News

But in doing so it will spend ₮180 billion in next seven years

When the budget, fighting against air pollution in Ulaanbaatar City, increase, smoke in City increase accordingly. Mongolia ranks No1 in the world with its air pollution. Last Friday, the Government debriefing was held at SGK’s Government hour on Resolution No 46 of the State Great Khural on decreasing air pollution in Ulaanbaatar City.

According to the GSK regulation, minority representatives should question the Government, but other MPs took the challenge and made many questions.

MP N.Ganbyamba: I understood that many people are in charge of this big issue, but zero result. In the report, it says that ₮6.2 billion is already spent for this purpose. But, in reverse, smoke and air pollution in UB were increased by 28%. What is the main logic of spend more and deteriorate the condition? Read the rest of this entry »

By-election result has complied and according to the pre-counting of votes, D.Zorigt, Minister for Mineral Resources and Energy won the election with 61% of total votes.

The official report is not yet released, but it will not likely to be changed much.

OT IA will be signed tomorrow at 15.00. The ceremony will be held at the Grand Hall of the Government House, with attendance of Presdient Ts.Elbegdorj, Speaker D.Demberel, Prime Minister S.Bayar and other senior officials of the Government of Mongolia and civil representatives. The agreement consists of three parts; investment, shareholders and pre-payment.

D.Zorigt, Minister for Mineral Resource and Energy, S.Bayartsogt, Minister for Finance, L.Gansukh, Minister for Environment and Tourism from Mongolian side and Bret Clayton, Chief Executive Copper of Rio Tinto, Keith Marshall, Managing Director of IMMI LLC, Peter Meredith, Deputy Chairman of Ivanhoe Mines Limited will sign on the Investment Agreement. Read the rest of this entry »

It had been 8 days since the start of the OT IA discussion between the Government and the investors. Some may believe that the day is coming because during some days discussions continued till midnight and even on the weekends. Government declared that they will not report publicly about the discussions before IVN and Rio reach a point and make decisions. That is their new house rule. The discussions may end this week and everyone is waiting for positive news eagerly. Everyone around the globe is waiting for news. 80% of Mongolian people want this IA to go forward and start giving its benefit as soon as possible. Read the rest of this entry »

According to the inquiry made by MPs, elected from Khuvsgul aimag, the Ministry of Mineral Resources and Energy prepared the list of mining and exploration licenses in the territory of Khuvsgul aimag. As of December 23 2009, 103 licenses in total were issued. But MPs wrote an official letter to the Minister for Mineral Resources and Energy, after the recently published interview of relevant official of MRA on the daily newspaper “Undesny Shuudan” (National Post), said that this number was increased up to 116.   Read the rest of this entry »

Irregular Cabinet Meeting was held yesterday and discussed the draft agreement on Oyu Tolgoi. Minister D.Zorigt said that the first draft has clause of receiving pre-payment from the investors. But it is still not clear yet about when the State Great Khural would discuss it. Also Tavan Tolgoi draft agreement is about to be concluded. Over10 companies are presented their interest in Tavan Tolgoi and one company was selected as its technical consultant.

Minister D.Zorigt shared some point of views with media:

Q: The State Great Khural has given instruction and guidelines. Does deal making process reflected this guideline? Is the draft agreement ready now? Read the rest of this entry »

Right at the moment, an unscheduled Cabinet Meeting is being held to discuss the Oyu Tolgoi and Tavan Tolgoi investment agreements. Minister D.Zorigt informed us about the recent developments and outcomes of the meeting.

Q: What is the situation now?
D.Zorigt: The issue is not yet concluded. It was presented to the Cabinet Members and now we are expecting comments and conclusions. Read the rest of this entry »

The working group, established under the Prime Minister’s resolution, is negotiating with joint team of Ivanhoe Mines and Rio Tinto on Oyu Tolgoi copper and gold project. Working group hasn’t reached any deal yet. But the joint team of two companies presented its proposal, accepting 34% of the Mongolian side ownership and dividend issue, but rejecting our intention of further acquisition up to 50% and windfall tax of 68%. Also it stated that it will discuss the issue of pre-payment after settling the general principle of the agreement.

Minister D.Zorigt has few words to make it clear. Read the rest of this entry »

D.Zorigt, Minister for Mineral Resource and Energy, has his views in the time of economy recession.

Q: You were the main surprise within the Cabinet Ministers when the new government was formed. How did you start your work?

D.Zorigt, Minister for Mineral Resource and Energy: I started my work to get acquainted with my sector. Mineral sector is my field of experience and knowledge, but energy is not. Once the government trusted me to manage this sector, so I have no ways to step out. Being as a young professional, I had gone through some objections and reactions. Sometimes I had time to hesitate with myself. Previously, I was working at the Ministry of Trade and Industry and worked on Oyu Tolgoi negotiation and preparation of papers up to the presentation to the State Great Khural. Read the rest of this entry »

Last year, at the first round, 15 deposits were announced as the strategically important, but the State Great Khural. The Government shall meet and get introduced with the investors who are expressed their interest in those 15 deposits, by closed meeting. Also the criteria will be confidential for the investors, said Minister for Minerals and Energy D.Zorigt, during the Discover Mongolia Mining Forum.