“The debts were settled on terms most preferential for our Mongolian friends. We discussed the possible merger of Erdenet and...

“The debts were settled on terms most preferential for our Mongolian friends. We discussed the possible merger of Erdenet and Mongolrostsvetmet and an IPO. Large-scale modernization of both is in progress, and I am confident that this process will considerably improve their competitiveness and have a positive effect on the Mongolian economy, whose personnel, resources and technological potential will grow. Russian companies – several dozens of them are working in Mongolia – actively invest in transport infrastructure, new railroad lines, mineral survey and mining. These projects build up the export potential of Mongolia, in particular, through the use of Russian seaports in trade with third countries.”

V.Putin, Russian Prime Minister. 

“The 68% windfall profit tax pushed the entire gold trade outside the law.”

P.Ochirbat, Mongolia’s first President and now
Director of Sustainable Development Center.

“The Oyu Tolgoi project is a natural fit with our strategy of focusing on low-cost, long-life assets with significant growth potential. Together with Ivanhoe and the government of Mongolia, we are determined to develop Oyu Tolgoi in a sustainable, mutually beneficial manner for the people of Mongolia.”

Andrew Harding, Rio Tonto chief executive.

“Mongolia is poised to generate the highest rate of growth of GDP of any country in the world over the next 10 years. Nevertheless, there remain hurdles. The government needs to balance a political mindset with the need to develop the enormous opportunities available.So while Mongolia has all the markings of a ‘rags to riches’ tale, it looks like the happy ending still has some way to go.”

Edwin Lloyd, investment analyst.
                                                                                                          

“I do not want to be a rich businessman of a poor country. Affluent ministers and MPs should remember the poor people they represent. We have to pay attention to the economic disparity among the population, not the least because national security is linked with economic freedom.”

Kh.Battulga, MP and Head of the Democratic Union of Mongolia.

“When we saw Ivanhoe and Rio Tinto were publicly discussing each other’s tactics, sure it affected everybody on the ground. But we knew  it was a disagreement between mother and father and never thought they want to kill this beautiful daughter they’re raising together.”

G. Batsukh, chairman of Oyu Tolgoi LLC.

“The budget of 2011 is special in that it will lead to the beginning of a new period in the national economy. Things will be different from 2012 with large-scale expansion in mining and factories beginning production. The budget prepares for this economic growth and extension.”

Ts.Davaasuren, Chief of the Standing Committee on the Budget.

“A solid growth outlook in Mongolia’s key export market, China, supports its economic prospects in 2011 and 2012. A generous and diversified endowment of natural resources supports long-term economic prospects. The key risk remains a return to unsustainable government spending growth, which could squander this progress.”

Fitch Ratings.

“The investment agreement requires Ivanhoe Mines to undertake a feasibility study for a potential smelter, but there is no obligation on actually building the plant. But bottom line, yes, we see eventually a smelter being built in Mongolia. It  makes sense in Mongolia on a longer term basis, maybe a ten-year period, with the Oyu Tolgoi project  producing a tremendous amount of concentrates at full capacity.”

Bill Trenaman, Investor Relations Manager, Ivanhoe Mines.

“Concentration of power in Parliament is one reason of increased corruption. Centralization of authority gives MPs too much leeway and transferring some budgetary and monetary rights to local governments would help reduce corruption. MPs should behave less as executive officials and focus on their monitoring role.”

Ch. Khurelbaatar, Head of the Cabinet Secretariat.
 

“Mongolia’s decision to revoke hundreds of gold mining licenses has alarmed investors but the government’s efforts to clean up its mining sector could have long term benefits. Too many outsiders were trying to pick up licenses in a bit of a lottery and trade, and you know what that can lead to. These licenses need to be properly explored and well thought through.”

Eric Zurrin, chief executive of ResCap.

“Mongolia’s position should be clear. The interests of more than two million Mongols, and not just two, have to be met, when selecting cooperation partners in developing the Tavan Tolgoi coal deposit.”

S.Batbold, Prime Minister.

“The law passed last year did not offer any definition of water basins or forest areas, leaving it unclear what projects would be under threat. It was a knee-jerk reaction that isn’t justified. The answer lies in creating a sound management framework, not in just trying to ban it. The problem now is that by banning these projects, they will be replaced by ninja miners -- and that is a worse outcome than what they had.”

Graeme Hancock, senior mining specialist with the World Bank.

“Domestic industries represent the Mongolian people and, as such, deserve strategic support from the government, without which, no matter what our capacity is, we cannot succeed. Mongolians’ courage and belief in themselves can be supported by the government restricting certain areas to only domestic companies.”

L. Ariunbold, Executive director of Mongol 999