The world is watching how Mongolia develops its potential

Why is the “Discover Mongolia“ Investment Forum important for Mongolia?

Every session of “Discover Mongolia“ helps bring the international mining world to Ulaanbaatar and showcases Mongolia’s attraction as a resource-rich destination. The country’s potential has always been known but it was seen as a last frontier - a country that offered a lot, but only if it had the right investment laws and implemented good governance and adhered to corporate social responsibility. “Discover Mongolia“ has been instrumental in driving this agenda.

Do you agree that the Mongolian mining sector has now entered a most interesting phase in its development?

Absolutely.  The investment climate was vastly improved with the introduction of the Minerals Law in 1997 but there was a setback in 2006 when amendments to this Law created concern among the international mining community because they allowed the Government to invest in strategic properties discovered in the private sector. They gave the State either a 34% stake and even a controlling interest of 50% or more in a deposit  whose exploration activities had been funded by the State budget.

Since then the eyes of the world have been following how the development of Oyu Tolgoi progressed and what path this world class deposit would take and how it would be treated by the Mongolian Government. The Windfall Profits Tax was a major hurdle in encouraging foreign investment in Mongolia, but companies that have persisted over the past few years in holding faith in what Mongolia could deliver will now see some great rewards for their unwavering belief.

The future of developing mining projects in Mongolia is positive and with all stakeholders and the Government working together with a common agenda, it will not be difficult to reach the goal of providing greater wealth to all Mongolians.
 
What sort of information on Mongolia’s mining sector is usually disseminated?

Such information started making headlines in the world after the discovery of Oyu Tolgoi. There is no doubt that Mongolia has major infrastructure needs that have to be addressed, including a major investment in increasing the capacity on the major north-south railway line. As a landlocked country, Mongolia needs to pay urgent attention to developing its road and rail infrastructure to allow maximum use of the country’s mineral reserves. Transportation to the two nearest neighbours , Russia and China, has to be quick and easy as they will undoubtedly be the gest customers for Mongolia’s mineral products.

In a recent edition of Uraniumletter focusing on Mongolia, Dr. Graeme Hancock, senior mining specialist of the World Bank’s Oil, Gas and Mining Policy Division, was quoted as saying that the Mongolian mining sector has the potential to contribute to the nation’s economic growth, but its development will depend on the government’s ability to establish and maintain a clear mining policy; a competitive, stable and predictable fiscal regime for mining; a stable and transparent legal and regulatory framework to manage mining development, protect the environment and ensure good corporate governance; policies and procedures to attract and retain world class investors who have the resources, management and technology to locate and exploit mineral deposits in a sustainable way; efficient mining sector institutions and strong administrative capacity for oversight; and appropriate policy responses to and transparent management of expected increases in mineral revenues and ensure lasting benefits.

Asia has become the region setting commodity prices and also the gest customer in the world. Would you comment on the cooperation and competition in the region?

It is probably a little early to talk about any effective regional cooperation in fixing commodity prices. Historically it is the laws of supply and demand that have dictated  prices. Since China entered a rapid and unprecedented growth period, it has needed to pay a premium to meet its mineral needs to fuel this growth. I don’t believe that any country has shown another any favours in regard to mineral pricing. If the demand was there, prices rose as much as they could for those commodities. Similarly weaker demand has often set prices back as we are currently seeing with the iron ore price deals for 2009.

Please briefly introduce The ASIA Miner to Mongolian mining companies and our readers.

The ASIA Miner magazine and its companion weekly news service are the gateway to the booming resources sector in China, Mongolia, Central Asia, India, South-East Asia and Australia. It is the only English-and-Chinese mining and resources magazine in the Asia Pacific region. It is published quarterly and is complemented with an electronic news service which is delivered to more than 11,200 readers each week.

The magazine and the weekly electronic news service feature news and information on mining projects, mine project investor updates, mine finance, governmental developments, company and product news and exclusive interviews with high profile mining personnel.

For the past six years The ASIA Miner has been known for offering the latest news about Asia’s new mineral exploration finds and developing mining projects and also for offering a platform for companies to showcase their products and services and to take their business beyond their borders.

The ASIA Miner is the Asia Pacific’s leading mining magazine, and with the weekly electronic news service it is the most sought-after media enabling our readers to access the latest and most reliable mining and resources news in India, Indonesia, China, Mongolia, The Philippines, Vietnam, Laos, Cambodia Thailand and Australia.

Our goal is to give mining, service, technology and heavy equipment companies a window of opportunity to showcase their mining developments, technology and other activities to Asia’s booming resource sector and be more successful in their business.