Mining Investors Should Respect Laws of Host Country

Mukherjee, our English Editor from India, and I today talked briefly about what recent UNCTAD report advises mining investors. The UB Post is having more on the report this week.

THE World Investment Report 2007, recently released by UNCTAD, defines the role of foreign-invested companies in the mining sector in developing countries as one contributing “to efficient production while, at a minimum, respecting host country laws."

I agreed what Mukherjee is thinking. Those foreign invested mining companies should respect the laws and regulations of Mongolia since they are coming here to make money, not to help us. Who are they to say "No!" to the laws of our country? The investment agreement, now pending its approval at the Parliament of Mongolia, is likely to exempt windfall profits tax to Canadian mining company. I remembered one civil movement activist was saying that it was shameful that so-called whatever mining giants or investors from developed countries seeking tax holiday from a small developing country. See, they are proud to call themselves as world no.1s of the industry. There should be no one above the law, I think.

I read last week a story by Reuters that "Rio Tinto warns Mongolia..." Who are they to "warn" us? I did not believe such someone business official from the Rio Tinto warned the Government of Mongolia.