PARTS OF SPEECH

“Mining is such an important sector in the Mongolian economy, but there are many who do not realize how difficult it is, in both the exploration and excavation phases. They think the country will get rich just by digging deposits out of the earth, but it is not so easy. Nobody in Mongolia ever dreamed of moving to Umnugobi for a new life, but that is what thousands are going to do now.”

George Lkhagvadorj Tumur, Managing Director of Hunnu Coal.

“Oyu Tolgoi is a phenomenal ore body. It has to be exceptional to be developed in such a remote location.”

Keith Marshall, CEO, Oyu Tolgoi  LLC.

“In the vast expanse of Eurasia, a trained investor eye might notice a subtle dust cloud rising on the Mongolian steppes from the gently trotting economy. This trot is set to become an unstoppable gallop as the country, roared on by the mining sector, emerges from the shadows of the Asian Tigers and takes its place as one of the fastest growing in the world.”

Eurasia Capital

“There is no doubt the coal mining market in Mongolia is going to give Australia a lot of competition, It is very close to the Chinese border, it has huge reserves of coking coal and thermal coal and it is very cost efficient.”

Wal King, chief executive, Leighton Holdings.

“The warning that Mongolia could kill the Australian coal industry could become reality as South and Middle Gobi coking and thermal coal begins to be shipped to Japan and Korea within a few years. Mongolia has a highly supportive government and has abolished the stupid taxes Australia is now contemplating. Australian mines are getting deeper and older, while these deposits in Mongolia are open cut from surface – they haven’t even been developed yet, the best years are still coming.”

Matthew Wood, Chairman, Hunnu Coal.

“In the next 20 years the world needs 600 million tons of copper metal, more than was mined in the last 110 years. Those of us in the business don’t have any idea where this metal is going to come from.”

Robert Friedland, Chairman, Ivanhoe Mines.

“I advised the visiting Mongolian MPs not to be carried away by the sudden influx of mineral revenues and urged them not to spend these on increased and unproductive consumption. Instead, they should be invested in areas that ensured sustainable development. Our experience of economic planning is that it is not advisable to be excessively dependent on natural resources because they are exhaustible, and economic crises can always recur.”

Kenneth Matambo, 
Minister of Finance and Development Planning, Botswana.

“The reality is that there is a shortage of flour in Mongolia. Unfortunately, the Government does not accept the fact and, instead, spreads disinformation. If the official boast – before, during and after harvest – that production has been in excess of domestic needs is true, why, then, do we regularly import flour? Such lying to the people, and such meaningless reassurances are all features of socialist era that refuse to go away.”

P.Tsenguun, Director of Altan Taria.

“[Oyu Tolgoi] may not be the best agreement but I don’t think it’s the worst either. Time is also of the essence. After 20 years of transition, many people’s lives are economically no better off than under communism.”

Mrs. S. Oyun, former foreign minister and opposition MP. 

“Of course you [may be] a nomad – but you are a nomad in the 21st century, and you have to adapt to the market to survive. Herders need training in risk management and new livestock practices.”

Ulambayar, in The Guardian

“There has been no change in the rotten State system since the socialist era. People are not committed to their work, and those in high positions refuse to take responsibility for the failures of their organizations. Money is certainly a problem but a way out has to be found if there is not enough of it. There has to be proper planning to utilize whatever resources are available. What we need is long-term vision.”

D.Ochirbat, MPRP MP.

“What else can we do? If we don’t dig what you say is pasture land for animals, we die of hunger.”

Unnamed artisanal miner in Gobi-Altai, to herders.

“Khan Bank changed the whole economy of herding from a cash economy to one that deals through the banking system. Much of the reporting in the mass media is based on wrong information and is simply not true. Very few herders have blamed Khan Bank for anything. When the dzud was at its worst, I went out myself to the most difficult soums out in the west and everywhere I went herders were grateful for our help.”

Peter Morrow, just retired Chief Executive Officer of Khan Bank.

“Few of the 50 or so companies with exploration licenses in the province do any actual work, even though they try to extend their license every year. Their goal is to sell it for a high price later. This trade in mining licenses must be stopped.”

Unnamed official of the Professional Monitoring Department in Gobi-Altai.

“More than 450 exploration licenses have been canceled on various grounds since the Presidential order, bringing the area of Mongolian territory under license to 17.8 percent from 24.7 per cent. This is a good thing in some ways, but it also means less revenue for the state.”

Kh.Batbaatar of the Geology and Mining Cadastre Department.

“Yes, both exploration and extraction work continues, almost as before, near prohibited areas. Both major political parties promised to take substantive measures to protect the environment when they campaigned in the election, only to forget all about it when they came to power and were in a position to do something. They have succumbed to pressure from powerful lobbies. People must be made to realize that environmental concerns are not a fashion but something that affects the very survival of Mongolians. We are inviting disaster for the sake of immediate commercial profit. Water sources are drying up, forest fires are getting more frequent and the desert is spreading. We must change our ways and not challenge the environment for a few kilograms of gold.”

G.Bayarsaikhan, Democratic Party MP.

“I enjoyed my interaction with common people away from the capital, and was struck everywhere in the 9 provinces I visited by their resilience and optimism, even in the face of adversity like the dzud. I assured them that all good ideas received from the grassroots will be considered carefully. People must discuss problems among themselves and come up with suggestions on how their condition could be improved,  and not to depend totally on the provincial authorities. ”

S.Batbold, Prime Minister.

“Implementation of the law prohibiting exploration and utilization of minerals in river and forest areas has been tardy because of a conspiracy to retain the status quo by relegating the law to limbo. Several issues are proving difficult to resolve, for various reasons.. Many of the concerns are legitimate  but these are being fed and exaggerated by the strong lobby of license holders who stand to be affected if the law is enforced. The government has also not shown any keenness to expedite implementation.”

Ts.Sedvanchig, Democratic Party MP.

“We are very disappointed that the Nuclear Energy Agency (NEA) has chosen to appeal a very clear and definitive ruling of the administrative court. We trust the court will deal with the matter quickly and uphold the ruling.”

Grant Edey, president and CEO of Khan Resources.

“The progress of the dispute over our uranium project in Dornod province is being watched by the entire international investor community. Neither of our two partners has invested a single MNT. The government of Mongolia has claimed the grant of license is its share of the investment, and ARMZ has said its share was in the infrastructure in place since the time when the Soviet Russian Government worked the deposits. However, most of the facilities and equipment are presently worth nothing or very little.”

O.Enkhbayar, Director of Khan Resources Inc. in Mongolia.

“Emphasis on mining and infrastructure development must not underestimate the contribution livestock meat and other products can make to the national economy. Once their safety is guaranteed by international standards of health and hygiene, export of meat, guts, skin and hides can easily earn USD300 million annually, a figure that will rise if Mongolia can also produce end products.”

Kh.Zoljargal, Deputy Minister of Food, Agriculture, and Light Industry.

“Collateral for bank loans is a problem as people in the countryside in general do not have enough assets to offer as security. Some deserving proposals had to be rejected because of this.”

D.Batmagnai, officer in charge of Finance and Investment of SME.

“Centerra’s current production guidance does not include any gold production from its Gatsuurt project in Mongolia. Due to the potential for delays in receiving the required approvals for the Gatsuurt project, Boroo has initiated an alternative plan that is expected to allow the Boroo operation to achieve the production within the forecasted range of ounces produced.”

Centerra Gold

“Mongolia is known for a high-literacy rate and math-oriented training and education. Another advantage here is that Mongolians can easily learn other languages. Also, as gender specialists say, there is a reverse gender situation in Mongolia. Here women are educated, well-recognized and well-respected.”

Ms. Ariunaa Lkhagvasuren, Founder of Intec.

“Mongolia will develop a hi-tech industrial sector and a transformation of the economy will follow. Exclusive dependence on mining will give way to a multi-polar economy. Nothing will happen overnight but this is certainly not beyond Mongolia’s economic or intellectual capacity.”

B.Ganbat, of the National Development and Innovation Committee.

“The present situation, where corporate income tax is expected to provide 90% of the State budget is unsustainable. Mongolians must understand that paying tax is not paying any sort of penalty and that everybody who pays some tax contributes to  development. Bringing more people under the personal income tax net will eliminate the need for distribution of social welfare, establish social justice, curb corruption, and give citizens value for their money.”

D.Baldan-Ochir, an MPRP MP.

“In a volatile environment, it’s often easier to obtain greater capacity through buying, rather than building. Rio Tinto would look to identify possible small- and medium-sized acquisition opportunities, and would also be open to innovative joint-venture opportunities, particularly with Chinese companies. However, we will remain focused on value accretion, and not on growth for growth’s sake.”

Guy Elliott, Chief Financial Officer, Rio Tinto.

“As long as a company holds a proper license, it does not matter whether it is Mongolian or Chinese. We shall not allow hoodlums to take the law into their own hands to resolve legal issues and shall not be intimidated by threats.”

Ts.Nyamdorj, Minister of Justice and Internal Affairs.

“Proper tourism has failed to pick up in Mongolia. Our guides are ignorant of local culture and traditions, with the result that the increase in the number of tourists has only meant a rise in environmental pollution and exploitation of natural resources. Local communities reap little benefit from tourism in their area, and are thus unable to work for regional development with the revenue that properly planned tourism should generate.”

N.Molor, Director of the National Tourism Center.