The UB Post-Leading English News

At the opening keynote speech of the event, D.Ganbold, President of the Mongolian National Mining Association, organizer of the conference where around some 500 both foreign and domestic investors have participated, urged all attendees to wear masks distributed free at the entrance gate. He also said that first aid unit of medical team is working at the site for the first–time in its history organizing the event for the seventh consecutive year.

Other than that, all eyes on the speakers of the Oyu Tolgoi project, which has become center of the attention of the event. “There is no more expectations, no more disappointment at this year’s conference,” said Ganbold. He said that the event is being organized in an atmosphere “totally different” from what it had one year before.

The Government has signed on October 6, US$4 billion investment agreement on the major copper-gold mineral deposit Oyu Tolgoi being developed in the southern province of Mongolia with its license holder Canadian Ivanhoe Mines, and its strategic partner Rio Tinto after over six years.

The copper-gold project, which is believed to be “best model” for future foreign mining company investments in Mongolia, that will create more than 3,000 jobs, is expected to commence in 2013 with a five-year ramp up to full expected production of 450,000 tonnes of copper per year and 330,000 ounces of gold. Under the terms of the agreement the Mongolian government will own 34% of the project. Key terms include a stable operational and tax environment, and creation of thousands of jobs for the Mongolian for the course of mine life.

“The Government of Mongolia will support mining projects that will create not only jobs, but also create more and more business opportunities for the local Mongolian suppliers, and train employees to gain knowledge and experience and become competitive workforce, and finally those who rules social responsibility and environmentally responsible mining,” said D.Zorigt, Minister of Minerals and Energy.

For the information of the investors, Zorigt said, the government of Mongolia withdrew its package of state policy documents it submitted to Parliament on minerals. “The policy documents have been submitted in 2006, and it never gone through discussion, we also needed to listen to opinions of industry representatives.”

In addition, for the first time in its history, the event saw diplomatic appearance by overseas mission here in Ulaanbaatar. Dr. Anna Biolik, Ambassador Extraordinary and Plenipotentiary of Canada, said that “Mining is popular like our hockey game. Mining is a major contributor to Canada”.

Canada has recently opened its diplomatic presence, more like an office of the trade commissioner that promotes trade and economic interests, in Ulaanbaatar under a “pressure” by Mongolian authorities at the time of its investments were in stake.

The Deputy Chief of the Mission of the US Embassy, Nicholas Hill, said that recent peaceful changes in the leader of the Government of Mongolia prove that Mongolia is “politically stable”. Previous Prime Minister, S.Bayar, announced his voluntary resignation from his office due to his health condition last month and his cabinet member, former Minister of Foreign Affairs, S.Batbold, replaced him with over 90 percent of vote by the Parliament. No other changes were made to the structures of the top executive body.

Steve Saunders, President of the North America-Mongolia Business Council, who has led the organization for over ten years, said that Mongolia is a democracy that places highest emphasizing to democratization. “Mongolia is a country that complies with 14 international investment protection agreements it joined, and is a country that corrects its mistakes made in the past,” said Saunders. He cited windfall profit tax Mongolia repealed after two years it practiced under strong opposition from the industry. “We hope also that Nuclear Energy Law, that Mongolia passed recently, would be rectified within near future because Mongolian communities described it contrary to the Mongolian Constitution,” said Sanders who overall determined the country a “good place to do business”.

The meeting will continue today, Friday, with hour of Government’s roundtable meeting, and presentation by speakers from various banking and financial officials.