Mongolia Business and Mongolian Daily Business News

MP Kh. Narankhuu shares his opinion and thoughts on recent days of crisis and economy turbulence. At this time of copper commodity price is decreasing and affecting much on our budget and economy, MP Kh.Narankhuu’s opinion is still important, who was the General Director of Erdenet JVC and Minister for Trade and Industry. This discussion was mainly focused on economy.
Q: It is still uncertain about the current development; even the working group on drafting new Mineral Law of Mongolia was established. Being as a part of this group, can you update to us with recent developments? Read the rest of this entry »

The state should improve business ‘game’ rules

It is clear now that MPRP and DP that seem to be eternal opponents to collaborate in Government level, neglecting differences in views and directions. Prime Minister and Leader of MPRP S.Bayar promised a rapid development by putting mineral deposits into economic turnover when initiating a step to put an end on a messy politics heated by July 1 riots. We invited H.Naranhuu, Minister of Industry and Commerce of former Cabinet for an interview. He speaks about present and future of mining and minerals sector.

How successful the office of Minister of Industry and Commerce of Mongolia which is dependent upon imports on gas relies on world market prices. However it is interesting what have you done for a period of a half year being the Minister.
-    Gas and oil price went up much during the office of this Government. This is the second time when gas price increased dramatically since power crisis in the world in 1973. It affected adversely on Mongolian economy and therefore the public might be unsatisfied with our work because MIC plays an important role in regulating the aggregate economy. Looking back, it has been taught that free market deals with problems itself since 1990. And as a result there is no regulation in the market. Regulations have not been performed by the MIC. Though everyone begins to realize now and everywhere that the Government must be engaged in the market. Thus, the MIC has to find out the mechanisms for market regulations. I think the new Cabinet would focus on it. Read the rest of this entry »

www.istockanalyst.com writes that,

Ulaanbaatar: The emir of Kuwait, His Highness Shaykh Sabah Al- Ahmad Al-Jaber Al-Sabah paid a private visit to Mongolia from 24 July to 2 August. The emir’s visit continued in rural areas under a special programme.
A banquet given for the honorary guest at the last day of his visit was attended by more than ten officials who accompanied His Highness Shaykh Sabah Al-Ahmad Al-Jaber Al-Sabah, Mongolian Minister of Industry and Trade H. Naranhuu, Minister of Environment G. Shiilegdamba, Minister of Education, Culture and Sciences D. Bolormaa, State Secretary of Ministry of Foreign Affairs D. Tsogtbaatar, the Ulaanbaatar City Mayor T. Bilegt and MP. K. Sairaan. Read the rest of this entry »

Economic Standing Committee of the Parliament held a session yesterday.
Value of Russian oil export tariff went up to USD241 per ton. According to estimation, if export tariff increases by 16.2 percent on June, price per ton shall reach USD 279-282. Due to such increase, oil price in the domestic market would go up by MNT219-351.

Kh.Narankhuu, Minister of Industry and Trade: The Government should hold a policy on oil processing plant. Rosnefti Company granted us discount of USD 4.8 million last February and March. The Company also restricted diesel fuel.
At the moment, majority of SC members expressed their rejection on establishing 100 Russian gas stations in order to supply 10 percent of import. Read the rest of this entry »

We got details from Kh.Narankhuu, Minister of Industry and Trade on gas price.

It’s been several days since a deadline for responding to a proposal of Russian Company “Rosnefti” expired. Aren’t they dramatically increasing the gas price?
Talks and negotiations are held with Russian side at all levels. I sent a letter to the Minister of Food and Agriculture of Russia. Confirming the interest of importing oil product from Russia, the letter told that specific study on Russian proposal was time-consuming. Also it mentioned about the advantage of entrance of foreign company into the domestic market that it would increase competition and liberalize the market.
Moreover we asked to keep gas price stable until the Parliament finishes discussing the matter. Russia did not send any official reply yet. We will carefully observe how Rosnefti Company would react to our proposal. They informed that a gas price would be changed if necessary. Read the rest of this entry »

Yesterday, Meeting of the economic Standing Committee got informed by the Governor of Mongolbank. Mongolbank had to maintain inflation rate at 6 percent but it let it up to 20 percent which means they had increased the rate by 3.5 times than the level it should be. Therefore it is hard to say that they are performing the obligations in charge of. They explain the reason of tugrug rate fall was salary increase of public servants and state social welfare provided to the public.
Of course, they didn’t skip to mention the price increase of oil, wheat and food stuffs at the world market. It is said that inflation rate would be kept at 6 percent if these things didn’t happen. Along with the misery information on their strict control over money supply, report of Steering Committee of the Mongolbank was heard. Members got replies to their questions after such poor and unreliable information flow. Read the rest of this entry »

We are speechless if Russia brings out the issue of Asgat during the visit of PM to Russia

We got views of Mr. Kh.Narankhuu, Minister of Industry and Commerce.

Prime Minister noted that Tavantolgoi would be taken into state ownership 100 percent. As a result of negotiation, 4 percent was left to Energy Recourses.

It was difficult to directly take the licenses from Energy Resources, which acquired licenses and invested according to laws of that time. It was necessary to be flexible towards the issue. Tavantolgoi has great resources of 6.4 billion. According to latest estimation its resource reached over 7 billion. Resource of cocking coal can be found in the midst of the site. There are 2 or 3 sites that have guesstimated resource outside the core. One of them is Ukhaa khudag left to Energy Resources. The part, which is cocked 10 times expensive than ordinary coal, has been transferred 100 percent to state ownership. Read the rest of this entry »

According to order which was issued by parliament speaker D.Lundeejantsan on 21-st January, joint working group of parliament and government was established to work out useful minerals law and investment contract draft. Working group that consists of eleven members (including Members of Mongolian Revolutionary Party and Democratic Party, Prime Minister S.Bayar and Industry & Trade Minister Kh.Narankhuu) were planning to summarize their opinions and hand to parliament in the mid of February to hold the session. Read the rest of this entry »

Industry & Trade minister Kh.Narankhuu met with Fan Bao Tsai, the president of “Petrochina Dachin Tamsag” Co.ltd which is making oil field research in Tamsag of Dornod aimag. President of the company said that they will increase their investment till 300 million USD in this year. Also he said that the company will bring 4000 workforce from south neighborhood in order to accomplish their field research within two years.

Industry & Trade Minister mentioned that “I hope that workforce issue will be introduced to government from Social Welfare & Labor Ministry”. I don’t think that all of 4000 workers are highly trained personals. So need to train Mongolians for priority.

Working group meeting, which was established by order of parliament speaker to make amendment and change to useful minerals law and work out on investment contract draft of strategically important deposits, was planned to be organized at 11.00 am on yesterday. Also this working group established a sub-working group which consists of civic movements, non-governmental organizations, scholars, Industry & Trade Ministry, Useful Mineral and Oil Affairs Administrative office and State Control and Supervision Office. It is headed by Industry & Trade Minister Kh.Narankhuu. The working group was planning to make enlarged session with sub-working group, and hand their draft to Government on today. But meeting was cancelled without clear reason.

The working groups summarized their opinions on about 10 principal issues and must hand to Parliament after discussion with Government. The parliament schemed to resolve the issue related to useful minerals in April. Also there is criticism that working group must include other parties’ members which have a seat in parliament. During the meeting of President with party leaders, they decided to involve them to working group. But since then no other talks about it.