PARTS OF SPEECH

“It’s very challenging putting together a combination of American, Russian, Chinese, Mongolian, Korean and Japanese companies. It’s very challenging and potentially an uncomfortable marriage. It’s not quite a UN of companies but more of a Security Council, and the talks to date seem just as complicated and inefficient as anything to pass through either of those bodies.”
Graeme Hancock, Chief Operating Officer, Erdenes Tavan Tolgoi.
 

“It’s very challenging putting together a combination of American, Russian, Chinese, Mongolian, Korean and Japanese companies. It’s very challenging and potentially an uncomfortable marriage. It’s not quite a UN of companies but more of a Security Council, and the talks to date seem just as complicated and inefficient as anything to pass through either of those bodies.”
Graeme Hancock, Chief Operating Officer, Erdenes Tavan Tolgoi.

Once we complete major reforms in the judiciary, the foreign business community should be able to trust and believe in our courts and legal system.” 
Ts.Elbegdorj, President.

“The Oyu Tolgoi project puts Mongolia on a new level of investment and economic production. It is essential that its successful implementation continues. It will demonstrate continuity in Mongolian policy and act as evidence that firms can successfully implement large-scale projects in Mongolia.”
S. Batbold, Prime Minister. 

“Our investment agreement with Ivanhoe Mines and Rio Tinto for the Oyu Tolgoi project has advantages. For example the investors start making a profit only after mining operations start but Mongolia is already earning revenue.”
S. Bayartsogt, Finance Minister.

“You cannot invest in Mongolia unless you have the local deals and contacts; there are so many bad opportunities and cowboys. Corporate governance, the ability to monitor bank accounts, are critical to the success of such a venture.”

Chris Rynning, chief executive of Origo Partners.


“One of the gest challenges we’re facing is the seller mentality and educating the seller on the very basics of corporate finance and M&A transactions. When doing deals in Mongolia, investors need to look at not just the value of the business but how much value the business owner himself adds,”

Bold Baatar, Chairman, Mongolian Stock Exchange.

“There is no lack of deals in Mongolia, as many businesses are looking for cash. However, there is very little precedent in Mongolia on how to structure deals, what role a private-equity investor plays in a business and how businesses are valued. In addition, some business owners have quite unrealistic expectations of valuation.”
Mandar Jayawant, Managing Director, Mongolia Opportunities Partners.

 
“For mining assets, the buyer and seller could disagree about all sorts of things. They might disagree on the amount of resources in the ground, how much can be extracted at a certain cost, the future price of the commodity and the availability of infrastructure around the mine. Structures like earn-out payments and ratchets can be useful in acquisitions in Mongolia to bridge the wide gaps between how buyers and sellers value a business.”
Mark Lehmkuhler, a Hong Kong-based partner at Davis Polk & Wardwell.
 
“Earn-out structures…allow both the buyer and seller to get comfortable and proceed with the transaction. It may not necessarily be unexpected or a bad thing if initially there isn’t a meeting of minds between the buyer and seller.”
Douglas Farrell, Citigroup’s director of mergers and acquisitions for Asia Pacific.
 
“I really don’t understand the current policy of Mongolian Government. Economic growth can’t be defined by only number, quality is important too. If wages of civil servants and pension increase by 50 percent, private companies will need to increase their wages. Manufacturing expense will increase and prices will rise, affecting poor people.”
Steven Barnett, head of the IMF Working Group on Mongolia.

“The country should have one goal, but the Government and the Central Bank have two different policies. In other words, fiscal and monetary policies have not been reconciled.  The situation has risks. A large budget is a project that needs much time and planning. Politicians should think realistically before increasing budget expenditures.” 
Rogier van den Brink, World Bank senior economist.

“We have never seen this much foreign investment flowing into Mongolia before. However, let us forget about statistics and pay more attention to how it actually benefits the people.”
N. Altankhuyag, Deputy Prime Minister and leader of the Democratic Party (DP).

“Food and energy prices have continuously risen throughout the year, reflecting wage and price pressures from a booming economy and government cash handouts, and will likely lead to continued inflation growth. Survey results from October indicate that real wages have fallen and almost half of those surveyed indicate their earnings don’t meet their basic needs.”
The World Bank in a report.

“This year’s budget has retreated from the achievement of the previous year and is profligate. Macro economic growth has been estimated too high.” 
Steven Barnett, head of the International Monetary Fund group on Mongolia.

“We will analyse how income resources are calculated and whether prices of products are taken higher than those of the world market. Additional income will go to the stability fund and we may reduce public expenditure after having considered all details.”
D.Demberel, Speaker.