Mongolia Willing To Rethink New Foreign Investment Law -Report
Mongolia is willing to reopen negotiations on a controversial foreign investment law after next month's parliamentary elections, the Financial Times reports Wednesday, citing Mongolia's president.
In an interview with the Financial Times, Tsakhia Elbegdorj conceded that there were problems with the legislation that restricts foreign ownership of "strategic industries," including mining, banking and telecommunications, to 49% for deals worth more than $75 million unless the deals are expressly approved by parliament.
"Personally, I don't think this is the best law. There are many issues that deserve criticism," he said. "We are always open to improve it, including listening to the suggestions of countries and organization that are willing to invest in Mongolia," he added.
He denied that the legislation was aimed at restricting China's control over Mongolia's resources, the newspaper said. However, Ganhuyag Chuluun Hutagt, vice minister of finance, conceded that the law has been rushed through because of the Aluminum Corp. of China Ltd., or Chalco's bid of almost $1 billion for a majority stake in Mongolian coal producer SouthGobi Resources Ltd. (SGQ.T), which is controlled by Canada's Ivanhoe Mines Ltd. (IVN.T).
Web Site: http://www.ft.com/cms/s/0/3215c23a-a98e-11e1-9972-00144feabdc0.html#axzz1wKwsXhES
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com
In an interview with the Financial Times, Tsakhia Elbegdorj conceded that there were problems with the legislation that restricts foreign ownership of "strategic industries," including mining, banking and telecommunications, to 49% for deals worth more than $75 million unless the deals are expressly approved by parliament.
"Personally, I don't think this is the best law. There are many issues that deserve criticism," he said. "We are always open to improve it, including listening to the suggestions of countries and organization that are willing to invest in Mongolia," he added.
He denied that the legislation was aimed at restricting China's control over Mongolia's resources, the newspaper said. However, Ganhuyag Chuluun Hutagt, vice minister of finance, conceded that the law has been rushed through because of the Aluminum Corp. of China Ltd., or Chalco's bid of almost $1 billion for a majority stake in Mongolian coal producer SouthGobi Resources Ltd. (SGQ.T), which is controlled by Canada's Ivanhoe Mines Ltd. (IVN.T).
Web Site: http://www.ft.com/cms/s/0/3215c23a-a98e-11e1-9972-00144feabdc0.html#axzz1wKwsXhES
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com
Comments
Post a Comment