“As fellow shareholders the Mongolian government must understand that like companies worldwide Rio Tinto is also in a difficult situation. Why should we block its plans to seek funds from financial institutions? That is standard business practice. How otherwise is it okay for the Mongolian government to issue bonds? As for cost increase, our actions, rather than the investors’, are very much responsible for this.”
A.Munkhbat, former vice president of OyuTolgoi.
“It is fine if because of its own compulsions, Rio is not keen on going ahead with the OyuTolgoi expansion. We can understand that, but we cannot accept that the Mongolian government is presented as the only reason for the delay ... I hope the market will understand that.”
Unidentified Mongolian official participating in discussions with Rio Tinto.
“I am as eager as everyone else for the day that the issues under discussion will be resolved. But speed is not the measure of success.”
Craig Kinnell, OT CEO.
“Companies are often weaker than they realise -- in political awareness... in development skills, communication skills.”
David Rice, former policy unit director at energy group BP.
“We recognise, certainly because of our bitter experience, the importance of making sure people on the ground know what is going on.”
Nick Allen, vice president of compliance at BHP.
“While there is always more to do I am confident we are well on the way to transforming Rio Tinto into the highest performer in our sector. A company respected for delivering value and immensely proud to contribute to the economies around the world wherever we operate.”
Sam Walsh, Rio Tinto CEO.
“We need to do better. We can’t keep squandering the opportunity to deliver real benefits to Australians from the finite mineral resources that belong to all of us. We need a federal government willing to stand up to self-interested mining companies and manage this resources boom in a fair and sustainable way.”
Andrew Vickers, Australian mine workers’ union official.
“We are privately told that under the new minerals law, there will be a reissuance of licences and these 106 now revoked will be reissued at that time and that we will probably have some preferential rights, but it will be a competitive tender process. So it is hard to gain too much comfort from that and nothing is yet official.”
Sam Spring, Kincora Copper CEO.
“While we do not expect resolution for the 106 licence issue in the near term, continued uncertainty is not in anyone’s interests....we reiterate our evaluation of increased sovereign risk of Mongolia and believe that investors should demand commensurate compensation for this increased risk.”
Dale Choi, of Independent Mongolian Metals & Mining Research.
“A lot of countries flip-flop between policies, which makes it very difficult for investors to know what they’re getting themselves into.”
JaakkoKooroshy, research fellow at Chatham House.
“Why only OT? Look at companies like Boroo Gold, Areva, Khushuut, etc. We invite foreigners to invest in Mongolia, but once they arrive we strangle them and try to rob them.But I have a firm belief that more Mongolian economy opens up more our national security is guaranteed.”
A.Munkhbat, former vice president of OyuTolgoi.
“The government plans more laws to expedite privatisation and reduce state ownership, but it will be a long process. I expect Chinese investment volume will increase in the next two years.”
S. Javkhlanbaatar, acting head of the Invest
Mongolia Agency at the Ministry of Economic Development.
“The new investment law is one of the first steps in reversing the current slowdown of Mongolia’s economy and increasing the inflow of foreign direct investment.”
Z. Enkhbold, Speaker of Parliament.
“Focus on the things you can control, you can’t control metals prices. Down cycles make excellent miners and create golden opportunities.”
Tom Kerr, Newmont’s senior vice president, North American operations.
“You have to have the courage of your conviction, we have to be thinking of 2019 or 2022 as if it were tomorrow. It is an ugly, long-term, difficult, 19th-century business, but anyone who tells you the supercycle is over is an idiot.”
Robert Friedland, executive chairperson of Ivanhoe Mines.
“The Mongolian talent pool is bright, but not very large. There is a very high literacy rate and a high level of academic qualifications. In my experience Mongolians are very quick learners, generally very keen to learn, and are pretty exceptional linguistically.The weakness, in my view, is that many undervalue solid experience versus academic qualification.”
Adrienne Youngman, of the Mongolia Talent Network.
“Mongolian TV networks are used as propaganda channels for politicians. They are used very effectively every four years at election time.”
Ms.NominChinbat, head of Mongol TV.
“The government is everywhere, the government decides everything. Accountability is given no importance. Anyone who becomes an official can act as he/she pleases. An election programme is prepared only to please the voters. ‘Today’ rather than ‘tomorrow’ is the only important thing.”
Ts. Elbegdorj, President.
“Democracy in Mongolia is like a hospital patient waiting helplessly for his death. A great danger is ahead if we don’t change the state into one that serves the people. We must prepare the state budget and use our income from taxes in consultation with the people.”
E.Bat-Uul, Ulaanbaatar City Governor.