Interview

Consulting firm will run the oil refinery Following the laying of its foundation stone on 22 June, hopes are high that Mongolia will finally have the long-talked-about oil refinery. The investment of $1 billion is assured, and work should soon begin on the planned two-stage construction. G.Ider asks B.Ankhbayar, Head of the Division of Non-metallic Mineral Production at the Ministry of Mining and Heavy Industry, how things are at the moment.

If licences are revoked, Centerra will seek huge compensation through arbitration On 7 June, the court trying the case between Save Noyon Mountain NGO and the Cadastral Section of Mineral Resources and Petroleum Authority of Mongolia (MRPAM) finally gave its ruling in favour of the NGO, after no fewer than 36 suspensions of hearing over some two years.

113 projects make it to national programme list E.Odjargal finds out from B.Bayarsaikhan, head of the National Development Agency, how projects are selected for inclusion in the national investment programme and the strategic goals of the “Three pillar development policy”.

Hasu Megawatt: a pioneer company growing bigger, better, and stronger Hasu Megawatt LLC is one of the Mongolian companies that are growing together with the Oyu Tolgoi project, bringing in international expertise, cutting edge technology and sophisticated know-how, and thus preparing a new generation of high-skill local professionals for the mineral sector.

Bilateral ties through Russian envoy’s eyes The Russia-Mongolia intergovernmental commission recently held its 21st meeting, where important issues were raised, as between two old friends, and important decisions taken, as would take the partnership forward in challenging times. E.Odjargal talks to long-time Russian Ambassador to Mongolia.

“Easy for ETT to raise funds on its own, but it is too early for an IPO” A mega project cannot be developed without mega investment, so where is the money going to come from if Mongolia is to present Tavan Tolgoi as one of the major mineral deposits of the world?

Gold-2: Good ideas poorly implemented G.Iderkhangai finds out from E.Enkhbat, Executive Director of the Gold Producers’ Association, why the sector thinks the Gold-2 programme is good on paper but poor in execution.

“We need a state policy built on national consensus” When P.Ochirbat, the country’s first President, academician and mining engineer, speaks, Mongolia listens. In a wide-ranging conversation with G.Iderkhangai, he speaks about issues in the mining sector.

Group studies the economics of water, and is worried Mongolia has two major water consumption areas – Ulaanbaatar and the southern Gobi region. The first has population pressure, while the second is where mining and economic activity will become more and more intense.

“Mongolians can do TAVANTOLGOI extraction work themselves” N.Ariuntuya finds out from the Executive Director of Erdenes Tavan Tolgoi, D.Ariunbold, about the present state of affairs in the company, and the likely challenges ahead. Some bold decisions are long overdue to fulfil the company’s potential but these can be taken only at the political level.

Updating the “Central Bank Law” will redefine the Central Bank’s governance As part of enrolling in the Extended Fund Facility (EFF) program at the International Monetary Fund (IMF), Mongolia has been committed to carrying out some important economic reforms, including that of its banking sector.

The IMF program “will not solve structural problems” Prof. Dr. Hans-Werner Sinn, who retired in 2016 as President of the Ifo Institute and Director of the Centre for Economic Studies in Munich, Germany, was in Mongolia in 2013 and then again in August-September, 2017.

“We must respect local citizens’ views” The thrust on reviving mineral exploration has led to a decision to issue special exploration permits on 41.4 million hectares of land, or 26.4% of Mongolian territory. Permits for 31.2 million hectares will be issued under application, while those on the remaining 10.2 million hectares will be decided under the selection process. N.Ariuntuya spoke to B.Baatartsogt, Head of the Mineral Resources and Petroleum Authority, to find out where and how matters stand.

“Tsagaansuvarga is ready to take off, but the State must take quick decisions” G.Tsogt, Deputy Director of Mongolyn Alt LLC, briefs E.Odjargal on the state of the company’s projects.

“The draft new law is not populist, it introduces professionalism” The response to the draft law on mining has been mixed. Among those who are fully or partly against it, some have specific objections while the reservations of some others stem more from fears of uncertainty.

John Langtry: Governments Are Not Good at Business 2017 marks the 45th anniversary of the diplomatic relations between Australia and Mongolia. It has also been a year since the Australian Embassy in Mongolia was opened.

“Oil price rise will bring in new investment” S.Bold-Erdene talks to Ch.Chuluunbat, Head of the Fuel Policy Department in the Mining and Heavy Industry Ministry, about amendments to the product sharing agreement, extraction of crude oil, consumption and investments.

“Mining governance has a formal aspect, and an informal one” The need to improve the quality of mining governance, in both private and State-owned companies, is now a priority in countries seeking to make optimal use of their natural resources.

Smart furniture that creates an environment and workspace which encourages employees to do their best as individuals and as a team is in Anun has already made its mark in the Mongolian furniture industry as a modern high quality office furniture manufacturer and supplier. In recent years organizations of all industries such as banks, financial institutes, educational and cultural organizations and mining companies are keen on buying furniture from “Anun”.

“When we invest we invest for a long term” Earlier this month, Jean Sebastien Jacques, who took over as CEO of Rio Tinto not so long ago brought the entire board of the mining giant to Mongolia for a trip to the Oyu Tolgoi site. He and the Rio Chairman also met with the Prime Minister to discuss various issues related to the OT project. S.Bold-Erdene of the MMJ was among the Mongolian journalists who spoke to him. This is a fair but not literal transcript of the conversation.