Thursday, May 1, 2014

Mongolia to revise mineral law to attract investment

ULAN BATOR, April 30 (Xinhua) -- Mongolian Mining Minister Gankhuyag Davaajav on Wednesday submitted a draft amendment to the mineral law to Parliament Speaker Enkhbold Zandaakhuu, as the country is trying to improve its investment environment.

Despite the adoption of new laws and regulations to make the investment environment favorable, no new international and domestic investment is coming to the exploration sector which is the driving engine of the mineral sector, said the minister, quoted by a press release of the Mongolian parliament.

The draft amendment calls for setting up a database about funds raised from international stock markets, improving agreements between holders of mining licenses and the local government, feasibility studies, and making clear the roles and responsibilities of government agencies and mining license holders.

The draft amendment also bans transference of exploration licenses wholly or partially within three years since the issuance of the license.

As Mongolia is facing an economic downturn, the Mongolian government is seeking ways to attract more foreign investment.

Negotiations with the country's biggest foreign investor Rio Tinto is still continuing as the Anglo-Australian mining company halted its underground mining work in the Oyu Tolgoi mine last August due to differences over the financing proposal on the project.

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