September 14, 2016
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Representatives from the mining sector express their discontent

Summary: The Prime Minister of Mongolia J. Erdenebat met with representatives from the mining industry and stated that the recently approved government Action Plan for 2016-2020 includes a budget of 12 trillion MNT for projects and operational expenditures in the mining and energy sectors. The Director General of Erdenet Mining Corporation Ts. Davaatseren stated that the mining sector has been under the thumbs of politicians and the long name law has repressed mining companies, resulting in many people losing their jobs and livelihood. The Law on Mineral Resource Management and Exploration has many incomprehensible articles and the purpose of the law is to clearly outline the minerals Mongolia has through proper geological explorations. The decisions made by the Mineral Resource Authority are not being properly implemented in many soums, and almost all soums have civic movements against mining companies. In the Constitution of Mongolia, it is clearly stated that the resources under the ground belong to the people, but the laws are very unclear when the wealth becomes the property of the companies. The member of the Executive Committee of Constructors and Machinists in Energy, U. Arslaa stated that the State needs to privatize its assets in the energy sector. He mentioned the Darkhan-Selenge Power Plant, which was privatized in 2004 and is operating without any problems, as an example. At the end of the meeting, the Prime Minister asked the representatives to pay attention to the concession projects and announced that he appointed the ministers to present 3-4 major factory projects each year.    

Keywords: mining reform   The Official Gazette /page 2/

Ts: Davaasuren, “We cannot leave debt for the government of the 2020’s”

Summary: Member of Parliament Ts. Davaasuren stated in an interview that the current Government cannot raise the debt ceiling and receive additional loans and leave the current debt problem to the next government. The current budget deficit stands at 4.3 trillion, and the deficit is financed by additional loans. The current Government proposed to raise the debt ceiling to 105% in 2019. MP Ts. Davaasuren encouraged the current Government to plan for additional ways to increase budget revenues, such as by increasing the number of taxpayers, expanding the base for tax revenue, and invigorating current businesses.   

Keywords: MP, interview, government debt   The Century News /page 2/


Trilateral meeting held to improve railway corridors

Summary: The 3rd trilateral meeting between Mongolian, Chinese and Russian representatives was held to discuss improving railway corridors that cover the three nations. Representatives from The Ministry of Road and Transport and the Ulaanbaatar Railway Society from Mongolia; the Ministry of Transportation and The Federal Agency for Railway Transport and Russian Railway from the Russian Federation; and the China Railway Corporation from the People’s Republic of China met to discuss the improvement of railway corridors, protocol projects and the cooperation plan. Private companies interested in investing and developing railway corridors, such as Northern Railways LLC and Sibur Holding, also participated in the meeting. The Deputy Ministers of Transportation from each country will sign the agreed upon project paperwork on October 20th in Ulaanbaatar.

Keywords: railway, transportation   Today /page A7/  

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Erdenet Mining Corporation’s account frozen

Summary: After a long dispute between Erdenet Mining Corporation and MRI Trading AG, the courts of London have decided to freeze Erdenet Mining Corporation’s accounts in Great Britain, which contain 7.1 million USD and 637,818 £. Until Erdenet Mining Corporation pays their debt to MRI Trading AG, their fund have been frozen and they are banned from selling copper and other materials in London’s market. Erdenet Mining Corporation signed an agreement with MRI Trading Ag on January 1, 2009 to supply 40 thousand tons of copper concentrate, but have failed to do so.

Keywords: mining

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