Daily Business News Mongolia

MP Kh.Narankhuu: We should worry about tomorrow instead of today

MP KIh.Narankhuu has his opinion regarding the mining industry and its recent development.

Q: Information of the working group was heard to the Standing Committee on Economy. Being as the Minister in charge of the Mineral Resource, what is your position in this environment?
MP Kh.Narankhuu: The working group presented its conclusion in the time of establishment of Coalition Government and new environment of crisis.
The Mineral Law of year 2006 was good law that is suitable for the situation. We issued the law that is much free that can attract foreign investment when the copper price was 1560-1750 US$. But many angel investors that are not serious in developing project, but are serious in raising making money on the mining projects, poured into Mongolia. It was one of the main reasons of stirring such a mess. It created negative feeling in the society. Also those many investors disappeared when the commodity price feel. (more…)

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Do.Ganbold, the President of the Mining Association of Mongolia: Investors will not become charity organization if they asked so.

Mr. Do.Ganbold, the President of the Mining Association of Mongolia has his views on the draft appendix on guidelines of the negotiation making on the investment agreement of Oyu Tolgoi and Tavan Tolgoi.

Q: Working group, led by MP Kh.Badamsuren, is about to present its draft resolution of instruction guideline in investment agreement. What is your position being as the President of the Mongolian Mining Association.

A: Looking at the resolution draft. It can be said that it has much more positive and progressive ideas than the voices at the State Great Khural. I understand that even it is already late, but it can show its effect immediately when I saw a provision on working within the current effective law framework. But when I have a look at there were some provisions that were in conflict. (more…)

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MP Kh.Badamsuren: Working group prepared its first draft

The position is to grant the power to the Government to sign the investment agreement on Tavan Tolgoi and Oyu Tolgoi. MP Kh.Badamsuren, Head of the working group of drafting the amendment in the Mineral Law of Mongolia, has his view regarding the current development in mining legislation.

Q: Working group on drafting the amendment in the Mineral Law of Mongolia worked on it for quite long time. What is the result of your group’s work?
MP Kh.Badamsuren: According to the resolution of the Speaker of the State Great Khural, a working group was established and started its work. The working group is paying much attention on drafting the amendment. All in all, the working group presented its first draft to the party groups of the parliament. Basically, party groups principally supported it. But there were many comments during the discussion from MPs. Therefore, the working group will discuss these comments and insert them into the draft law. One thing need to emphasize here is MPs have visionary approach. (more…)

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The Mongolian State will own 34% of Oyu Tolgoi and 51% of Tavan Tolgoi

Yesterday, parliamentary group of MPRP and DemParty discussed the comments and conclusion of the working group of drafting amendment in the Mineral Law of Mongolia. The working group presented two draft alternatives. First alternative is to withdraw two drafts, because of the fact that the most of the lawmakers weren’t re-elected.  The second alternative is not to change the current Mineral Law of Mongolia and to sign in the investment agreement on Tavan Tolgoi and Oyu Tolgoi. (more…)

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S.Oyun: We rely on silver and bronze opportunities

MP S.Oyun, a member of working group of drafting amendment in the Mineral Law of Mongolia, has her words regarding the current issues and mining legislation development.

Q: Working group held several meeting, but it had not that satisfactory results.
MP S.Oyun: We met several times after studying four or five drafts for the Mineral Law of Mongolia, presented since 2006. In year 2006, the Mineral Law of Mongolia has provision that the Government of Mongolia to own up to 34% in strategic deposits. After that there were talks about increasing it to 51%. Also provisions on agreement in dividing product and windfall tax change were added. Meantime, world economy is undergoing the financial crisis and the commodity price is decreasing 2 months in a row. Actually, commodity price is surging, therefore mining business is risky. Members of the working group are discussing seriously about 51% ownership of the Government. (more…)

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J.Enkhbayar: We lost billions for our political attitude towards economy

MP J.Enkhbayar is a member of working group on drafting amendment in the Mineral Law of Mongolia has his words regarding the current issue.

Q: You are a member of working group on drafting amendment in the Mineral Law of Mongolia. How is the working group’s progress?
A: Frankly we are suffering for our political attitude towards economy. We lost several billion US$ for this stupidity. Shortly, we missed the best chance and opportunity. I read through previous laws and drafts. I noticed many populist provisions and articles in them. We need to fix those populist and exaggeratedly political provisions.The mining projects must be realized immediately. (more…)

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Dr. Graeme Hancock, senior mining specialist for the World Bank’s Oil, Gas and Mining Policy Division: State ownership of 51% is not the best alternative

Q: How does the financial crisis affects the Mongolia?
Dr. Graeme Hancock: It affects Mongolia enormously. Copper and iron price fall paralyzes mining companies.

Q: How long the world financial crisis would continue?

Dr. Graeme Hancock: Experts and economists are studying it, but it is too early to predict. There was a prediction that it would continue 3-4 years. (more…)

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The income from expected deposits will not be included in budget planning

The Draft Mineral Law was postponed after the election, but together with the election and rioting, the copper price decreasing sharply. Meanwhile, the State Great Khural appointed one working group to draft the new version of Mineral Law of Mongolia. Even some MPs visited to South Korea and exchanged some points of views with Korean experts. During PMs visit to Republic of Korea, South Korean Consortium of 11 companies expressed their interest in Tavan Tolgoi project. (more…)

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Draft Mineral Law must be proposed by November 15

The preparatory working group on drafting new mineral law of Mongolia started its work. The working group, consists of around 10 MPs led by MP Kh.Badamsuren, held meeting yesterday at 15.00. MP S.Oyun from Civil Will Party also included in the working group together with MPRP and Democratic Party MPs. This working group will consider previous draft laws on mineral and make research on them. There were 4 draft laws on Mineral. All in all, the working group must present its draft law by November 15 2008.

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