Policy and politics

Tavan Tolgoi gets ready for new suitor, at long last The bride has grown old since her beauty drew a bunch of the most eligible suitors in the autumn of 2008. The dowry for the world’s second biggest coking coal deposit has been increasing since then. We talk of Tavan Tolgoi.

Completed socially and economically beneficial, environmentally friendly Feasibility Study The “Egiin Goliin Hydro Power Plant” (EGHPP) project has been on the papers for many years and hasn’t become reality until today. The New Government for Changes funded the project initiation phase from the Chinggis bond, taken measures to move the project from halt state to implementation stage.

Anglo American PLC team on fact-finding visit Representatives of diversified miner Anglo American PLC were in Mongolia recently to explore the possibilities of investing in coal and copper assets in the country.

No decision yet on State ownership in Tsagaansuvarga Uncertainty surrounds the development of the Tsagaansuvarga copper project, halted by its owners Mongolyn Alt (MAK) for lack of funds after completing 45% of the construction schedule.

Costly delay over a new petroleum law A draft petroleum law was submitted to Parliament almost a year ago, and it is surprising that our lawmakers have not yet had the time to discuss it.

Breakthrough in sight: PM asks Rio Tinto to resume talks The Mongolian Government has blinked, and taken a step to resolve the impasse over the second phase of the Oyu Tolgoi project. Expressing the hope that this will “open a new chapter in our relationship”, Prime Minister Altankhuyag wrote a letter to Rio Tinto CEO Sam Walsh on March 27, saying talks on financing the mine’s further development can be resumed without waiting for the completion of the feasibility study.

OT waits for a brave and bold stroke The European Bank of Reconstruction and Development (EBRD) has once again deferred releasing funds for expansion of the underground mine at Oyu Tolgoi, from February 27 to March 31. That will also be when 15 commercial banks decide whether to defer the funding or even to cancel the financing deal.

From draft to State Policy – a long journey The State Policy in the Mineral Sector was passed last month after being discussed for over two months. President Ts.Elbegdorj had proclaimed a decree last March and a working group was set up to prepare a draft policy for Parliament to discuss. After working for almost half a year, the working group submitted the draft to the State Great Khural at the Fall Session.

Game-changing sub-programmes in the making A novel feature of the draft State Policy on the Mineral Sector, awaiting Parliament’s approval, is that its implementation will be effected through several sub-programmes, the detailed explanatory and regulatory articles related to which will ultimately demarcate the way along which the whole mineral sector will develop until 2025.

Statements give way to clear definitions The draft of the State Policy on the Minerals Sector was submitted by the Ministry of Mining on May 31 this year. After almost half a year of discussion, what have been the major changes suggested to it?

A forum that used the past to prepare us for the future There was good reason why The Mongolian Mining Journal was among the organisers of “The 20th Anniversary of the Modern Mongolian Mineral Sector” Forum held at the ‘A’ Hall of the Government Palace on November 15.

‘Crawling depreciation’ and ‘Expansionary policy’ Two new terms were introduced into the Mongolian economic discourse this year: ‘Crawling depreciation’ and ‘Expansionary policy’. The first was used to define the economic trend and the second to describe the nature of our monetary policy.

TT power plant to follow global best practices The planned thermal power plant based on Tavan Tolgoi coal is to be built with both Government and private investment. The Head of the Tavan Tolgoi Electrical Plant Proposal Department, Dr of Economics M. Enkhsaikhan, describes how things are progressing.

Forum sends recommendations to Parliament, President The following recommendations, emerging from the proceedings at the “20 years in the modern mineral sector” forum, have been sent to members of parliament, the President’s Office, and cabinet members.

Taxes as important as dividend from OT Intense discussions between the Mongolian side and Rio Tinto are on, and three separate committees with members from both sides are holding talks on how the initial investmenton OT had been spent, if the Feasibility Study needs change, and how to find finances to develop the underground mine. Meanwhile, no one is certain how long additional financing for the underground mine at Oyu Tolgoi is to remain suspended.

“We have to balance the commercial and environmental aspects of mining” The draft State policy on the mineral sector, now before the State Great Khural, is likely to be discussed and, many hope, approved during the Fall session. Three independent working groups helped prepare the draft. One of these was led by B.Batkhuu, director of Policy Implementation Department at the Ministry of Mining. N.Aruintuya of MMJ talked to him to know more about the draft.

Let’s hope that the newly built railroads don’t wind up being useless in the end Interview with S. Haltarbanid, railroad engineer for MTZ (Mongolian Railroad). A very experienced engineer who during his many years working with the Russians on the construction of the railroad has made over 30,000 km of railroad blueprints. He is concerned that, in the end, the newly laid railroads will become useless. Please read the reasons for his concern from the following interview, conducted by reporter N.Ariuntuya.

“Non-responsiveness is a sign of refusal, but it happens very rarely.” In this interview, the Mongolian Ambassador to Australia, R. Bold, addresses a wide range of issues related to Australia and of great importance to Mongolia. Among the topics he discusses are whether Mongolia can learn from the Australian model of development and whether the Australian government is attempting to improve communication between Rio Tinto and the Mongolian government.

A New President The presidential election marathon has begun. We will see politics unfold until the 26th of June, the day the ballots are taken in, and maybe, even all summer long.

Mongolia’s moment What has been going on in Mongolia is unique, and it has been on my mind ever since it began. What’s important, however, is that we focus on what this means on the street.