DJ Mongolia to Scrap Foreign Ownership Limits in Strategic Sectors -Official

BEIJING--Mongolia's government is moving to scrap a year-old law restricting foreign ownership of strategic assets, including in the mining sector, a senior government official said Wednesday.

The proposal is subject to a vote likely in December by Mongolia's parliament, Ministry of Mining Director-General of Strategic Policy and Planning Otgochuluu Chuluuntseren said in a phone interview.

"We are trying to cut the Strategic Entities Foreign Investment Law," Mr. Otgochuluu said. "We will make an amendment to our investment law so there will be no more distinction between foreign and domestic (investors)."

The law, enacted in May last year, requires foreign investors to get government approval if they want to acquire 33% or more of a company in a "strategic" sector, such as mining, banking and telecommunications.

However, Mongolia will still single out bids by foreign state-owned investors for special review, by setting up an official regulator modeled on Australia's Foreign Investment Review Board, Mr. Otgochuluu said.

Write to Chuin-Wei Yap at chuin-wei.yap@wsj.com

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(END) Dow Jones Newswires

08-28-13 0414ET

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