March 6, 2018

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Consultative meeting on tax amendments held        


Yesterday, Prime Minister U. Khurelsukh and Minister of Finance Ch. Khurelbaatar held a consultative meeting with business sector representatives regarding tax law reforms and amendments. The Minister of Finance noted that   amendments were drafted on four key package laws and 20 subordinate laws. The amendments include major changes to the  VAT law. The amendments will be discussed and voted on during the spring parliamentary session and, if approved, will come into force on  January 1, 2019. Prime Minister U. Khurelsukh said, “The government will follow a policy to support honest tax payers and employers. The level of responsibility for entities who have fairly reported their taxes but couldn’t pay them on time will differ from those who have intentionally misreported taxes. The amendments will reduce taxation on dividends and bank interest income in order to support investment and reduce loan interest.” While answering questions from the meeting's participants, Minister of Finance Ch. Khurelbaatar while noted, “This is the first round of consultative meetings being held with business sector representatives. It is fully possible to include  proposals and suggestions from business entities in the amendments. Mongolia will organize an Investor’s Assembly in Mongolia, on March 26 to 27 of this year, and one of the themes of the assembly will be dedicated to tax reform and amendments.”      

Keywords: tax reform, Ministry of Finance, Prime Minister   Daily News /page 1/


City administrators consider burning waste for energy production       

Summary: Yesterday, representatives from new energy developer China Tianying Inc. met with specialists from the Mongolian Academy of Sciences to discuss the possibility of establishing an energy producing waste processing plant in Ulaanbaatar. According to company representatives, the factory could process 500 to 1,000 tons of waste per day and produce an average of 10 MW of electricity annually. The company told city and state officials that it would not require city or state funds to establish the plant, and instead proposed that the city purchase electricity generated by the plant, and once the terms of the purchase agreement are completed, the plant would be officially handed over to Mongolia at no additional cost. A China Tianying Inc.  representative stated, “There are a number of such plants in China. The advisor to the Prime Minster of Mongolia and the Mongolian Ambassador to China will be visiting one of our plants next month. Once the city administrators and other officials agree on the terms, we can estimate and define the plant's capacity.”            

Keywords: waste management, Ulaanbaatar, green energy      Today /page B1/


Mongolian companies look to trade on the TSX

Summary: Several mining companies operating in Mongolia attended the Prospectors and Developers Association of Canada (PDAC) conference in Toronto, Canada, and expressed their interest in trading on the Toronto Stock Exchange. During the conference,, Mongolian Metals Corporation, Steppe Gold and other companies with Mongolian interests presented their projects to foreign investors. In 2017, it was announced that Steppe Gold planned to issue an IPO, and the company has started to intensify its exploration in Mongolia. The company recently bought the Altan Tsagaan Ovoo special mining license from Centerra Gold for 9.8 million USD, and has initiated drilling of 4,000 meters at the mine site. Steppe Gold also purchased a license for the Uudam Khundii exploration project in Bayankhongor Province with an 80/20 percent joint venture with the local government. According to company, initial exploration work has been completed, resulting in the identification of four new gold reserves. Mongolian Metals Corporation has purchased 13 exploration licenses within the last 12 years, and has been actively conducting exploration on 75,000 hectares in Bayankhongor Province over the past nine years. The company reports that it identified promising reserves of gold, copper, and silver in 2017. Bloomberg TV Mongolia reported that during the conference, Minister of Mining and Heavy Industry D. Sumiyabazar informed investors that Mongolia will lower taxes on the sale of  mining licenses.  

Keywords: IPO, Canada, stock exchange      The Official Gazette /page 11/

online story  

PDAC Convention highlights

Summary: This year’s PDAC Convention was attended by over 200 representatives from Mongolia. During a PDAC conference, the Mongolian Minister of Mining and Heavy Industry spoke to attendees about Mongolia's plans for establishing a resource treasury fund, beginning with the issuance of Erdenes Tavan Tolgoi shares as an IPO available to the international market. Xanadu Mines reported on their plans to be dually listed on the Toronto Stock Exchange. Investors attending the Mongolia conference spoke asked about the stability of Mongolia's tax environment and asked for  clarification about tax reforms that would impact the transfer of special mining and exploration licenses. The Minister of Mining told investors that the government is working on tax solutions that would focus on a company’s profits rather than its sales.

Keywords: Canada, mining, ETT

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The American Chamber of Commerce in Mongolia · 8F Naiman Zovkhis Building 21 Seoul Street · Ulaanbaatar, 01 14251 · Mongolia