Mongolia Business and Mongolian Daily Business News

IA of Oyu Tolgoi was discussed yesterday between the Government, IVN and Rio Tinto. They have sat at the table for the 4th time. Sam Regal, leader of the working group of the investors had met with D.Zorigt, leader of working group of the Government and S.Bayartsogt, Minister for Finance. Sam Regal is responsible for all investment agreement of Rio Tinto.
Working group of the Government presented the resolution No 57 to the investors. This means the Government is only allowed to make agreement under the current principle made by the Standing committee on Economy. The guidance is to make the agreement without tax waive or redemption. The IA discussion will continue to resume today.

The Standing Committee on Economy of SGK held meeting and resolved to present the draft agreement to SGK session.

There were quite many negative comments on the agreement such as some MPs criticized that the Government failed to acquire 34% of OT free or project without payment. For example, MP L.Gundalai said that 30 years of agreement term will hurt the National Security of Mongolia. The Speaker said that no country in the world has built such an agreement with 30 years of term. Read the rest of this entry »

The State Great Khural discussed the budget prediction of year 2011, 2012 and budget environment of year 2010. The Government prepared the plan to boost the real growth of the economy of Mongolia up to 7% in time of crisis.
But MPs critisized that the Government should increase the growth upto 13% as it was stated in the Government portfolio.

Also MPs critisized widely that 1.5 million MNT as the Grant of the Motherland is not included in the budget prediction of year 2010. MP L.Gantumur commented that “this State Great Khural was established to provide 1.5 million MNT to its people. But it was not included in the budget environment of year 2010, and even in the budget prediction” Read the rest of this entry »

Today, the Standing Committee on Economy will discuss the draft agreement on Oyu Tolgoi copper – gold deposit.
MPs worked “hard” on the draft agreement submitted by the State Great Khural and managed to conclude it by 22.00 Thursday, May 07 2009.

As our readers may have known that Working group is led by MP G.Zandanshatar and its members are MP Kh.Badamsuren, Ts.Bayarsaikhan, D.Zorigt, N.Batbayar, D.Baldan-Ochir, B.Batbayar, S.Byambatsogt, R.Bud, D.Odkhuu, Ts.Tsengel. Read the rest of this entry »

The Standing Committee on Economy held a meeting and discussed the issues of preparation of the draft law and amendments that are need to be made in relation with the draft for the general session of the State Great Khural and drafting the comments and resolution of the standing committee. MP Kh.Badamsuren shared his opinion with our readers.

Q: What is the progress of draft agreement on Oyu Tolgoi so far?

MP Kh.Badamsuren: The project is huge and very much related to the faith of the nation. Therefore, it takes extensive time. MPs have very serious consideration towards the draft. MPRP and Democratic Party groups made its final comments and conclusions. Working groups of the SGK and Government are working together when necessary. It is huge project with so much impact on every field of Mongolia. Therefore, almost all standing committees should have their conclusions and comments. All in all, the decision of the State Great Khural should be made immediately. MPRP group agreed upon accelerating the procedure. Read the rest of this entry »

The Standing Committee on Economy meeting is held. The meeting is planned to discuss many issues and laws including OT investment draft. At the very beginning of the meeting, MPs discussed about whether to discuss OT darft agreement. But its draft was postponed again for discussion. Right at the moment, the President of Mongolbank is making report on monetary policy implementation.

Today, Standing Committee on Economy will held meeting at 14.30 and discuss the preparation issue of OT agreement draft and other draft amendments of laws related to the agreement, for the State Great Khural session. Also, working group, established by the Standing Committee on Social Policy, Education, Culture and Science, will held meeting and discuss the issues of National Committee of Social Insurance.

Standing Committee on Economy has discussed the Government bond issuance. Board of Directors of IMF approved “Standby” program, equal to 153.3 million SDR, in order to support stability of the Mongolian economy. Within the framework of the program, 76.3 million US$, equal to 51.1 million SDR, was received to the Central Bank. But Mongolia received the obligation to deposit it at special currency account of the Ministry of Finance and the capital resource, equal to the amount, deposit in the stock account of IMF at Mongolbank. Therefore, the Government made request to issue the Government bond of 220 billion MNT. Read the rest of this entry »

Two MPs shared their opinion on OT projects:

MP Kh.Badamsuren:

Q: What was the biggest reason of rejecting the draft agreement on OT?

A: I didn’t attend the last part of the meeting. Actually, according to both party group stance and Standing Committee on Economy, OT draft agreement should have discussed. All agreed upon giving chance to the Government, the main negotiation maker of this deal. But there was some procedural issues.

Q: What is it exactly? Read the rest of this entry »

MPs are in trouble with understanding feasibility study of OT project. Project implementation side started its translation recently, but it might take 3 months at minimum. Therefore, they have to rely on their English in understanding the feasibility study.

Some sources say that after detailed discussion of the Standing Committee on Economy, it reached the final decision to discuss the draft agreement by the State Great Khural, which was just two hours before the closing of the irregular session of the State Great Khural.  Read the rest of this entry »