It is more likely that the new Prime Minister S.Bayar is going to withdraw the draft investment agreement submitted to the Parliament on the Oyu Tolgoi, a major copper and gold project in the southern province.
Some specific articles of the multi-billion dollar agreement including the percentage of the government's stake of 34% would be reviewed again by the government and resubmit to the Parliament with 51%. Two different working groups were set up to negotiate with the investors on
this. Opposition Member of Parliament S.Lambaa confirmed the information that the draft investment agreement has been withdrawn back.
"The draft agreement is put above the laws and regulations of Mongolia, which should not be acceptable."The agreement was to be signed between the Government of Mongolia and Canadian invested Ivanhoe Mines Mongolia Inc company after the Parliament approves.
The UB Post plans to write an editorial piece on this.
9 comments:
I find you comments on this blog confusing and I am willing to bet-biase and that you are a sympathetic supporter of the opposition party-and your firm may even contribute to its election platforms.
Mongolians can barely feed their Yaks let alone their own people and foreign investment is needed-
or the assets in the ground will stay in the ground as the technical expertise-and the dollars to undertake large mining operations-let alone supportive infrastructure the nation of Mongolia and its government cannot provide...there is a reason why Mongolia is still considered a frontier land of investment-its because of cowboy politics-a backwards navel gazing lack of political vision-and vested interests more concerned about securing and retaining power then they are about distributing the wealth of its countries vast resources amongst is sparse populace...you have the have's having more in Mongolia at the expense of have not's getting none...and the have's in Mongolia getting more...blaming the reasons they are in the pockets of their average citizens...on foreign investment interest...pure and unadulterated BS-Mongolia has long been plagued by corrupion in its business dealings and in its politics...on its own without the help of the Russians or Chinese historically or more recenlty with Western investment coming in.
It remains to be seen when a nation of Yak riders and felt walled tents with wooden stick supporting walls-will ever join modern civilization-content to be in the equivalent of the "modern day dark ages" then joining the information revolution and participate in the economic expansion its Chinese neighbours and its Indian cousins are in right now.
And your words in your blog-don't make much sense...you say the IA is being taken back...then you go on in the first part of your paragraph to say as follows..."it is more likely"...this is not definitive and more inner musings expressed aloud.
"It is more likely that the new Prime Minister S.Bayar is going to..."
I think one of the first steps that the new admistration under Bayar should do...would be to implement some laws regarding the media/press of Mongolia and observation of a code of ethics...cuz you guys from what I have seen are starved for news...put your own opinion into any news item instead of doing what your supposed to do on it...just report it...not take a position on it but report it-and when your national GDP is smaller then the scope of the IVN copper project on its own-I would call Mongolia a nation of beggars with a collection plate going around like panhandlers-cuz by the time the nation and its politicans of Mongolia get its act together-and think they can participate in the commodities boom underway...they will have missed the boat cuz it will be long over...the time to become a functioning mine is not done overnite and the roadblocks created-don't direct traffic as much as they do to clog up its route of progress.
There is no way a nation of beggars can dictate economic development-to companies that offer it-and better then the government itself...know how to bring it.
The starving peasants of Mongolia-deserve much better then a government that cannot see the need to feed and house its people-and bring them into the present century instead of living in the past-poor...impoversished...antiquated in all aspects of standards of living...over the needs to remain in office.
And you guys in the media over there...are no better...including sir...you...sensationalistic-sometimes alarming in tone-to me irresponsible at times teetering if the same kind of reporting was done in the west...perhaps even legally IMO cuplable-and I often suspect hidden agendas...as a journalist and member of the free media in Mongolia...you certainly should aspire to do better...cuz in my opinion-you can't do much worst.
I agree with most of what this "Anonymous" reader said in his/ner comments above. Just wanna correct one huge mistake: We are Horse riders, not Yak riders!
Yes, I am proud of being called as Horse rider; that's what Mongolia is about.
I understand you fully,you goddamn city rat, that Oyu Tolgoi things are not going the way you wanted, but be patient, everything's gonna be alright. You may express your opinion, call the pigs of the Parliament "pigs", or the Prime minister as an idiot, etc., but you must not insult the whole nation, kapiert?
I agree that our dumb media people don't do their job properly. always forcing us to accept their opinion.
I agree that we need to explore the underground treasures and use it ASAP.
You might be one of the angry Ivonhoe mining stockholder, but why insult the entire nation instead of dealing with the few who are responsible for this delay.
I do personally favor the western investment.
Believe me, the communists can never do it better and there are some "patriots" who joined them too, and they are all to blame that Mongolia becomes a country full of beggars.
I agree with most of you comments...was talking about the select few-who actually gain by keeping the average Mongolian citizen in adject povertry.
I am not a Ivanhoe StakeHolder-but I can see what effect the GOM is having by catering to special interest groups instead of doing what needs to be done-giving economic opportunity to the Yak Herders of Mongolia-to join the modern age-see infrastructure buildouts-roads...bridges-utility stations created...socio economial spin offs from the support industries that will be needed...ast he services sector in Monoglia will grow leaps and bounds-to keep the mining industries operational...the GOM tax coffers will balloon and the standard of living will increase across the board-if Bayar is smart enough to see that road backwards is paved with nothing but gravel and detours that lead nowhere...on a trip with the Russians and the Chinese in their prior lives-that went nowhere-and giving the West the opportunity it needs to get things going-as only the free flow of capital and goods in a market society can deliver...is what is needed...Western money...western technology-and western business ...best of breed...business practises.
Canada has become one of Mongolia's best friends...given Mongolia is still subect to the rule of law...the World Bank...and WTO and the UN-I think International agreements for a forvabe investment climate in Mongolia will be worked out.
Because the true costs of them not being worked out-will set Mongolia back even further down the path of realizing its potential and joining the world economies of this world...then where it exists right now...and fwiw I believe Bayar knows this...and that the path his is charting is forwards...where it paved with opportunity-yes some risk...but with risk comes reward...and your level of reward is always comensurate with the level of risk invovled...and for once in a long long time...I am hopefull that the dollars invested with filter its way down the to the average Mongol in the street..instead of just rich Mongolian Party fatcats getting fatter and the havenots winding up with less then they have already.
Mongolia should set up an endowement trust fund much like Alberta does in Canada on their oil patch taxes and concesssions...that would be a rainy day fund for Mongolia to draw on to fund state projects that bring a benefit to all.
However me thinks they would needs some strong oversite and oversteer managing a fund that would be quite large in numbers...to ensure the corruption that exists in Mongolia...both apparent and hidden in the shadows...did not use the funds for personal motives.
I think Bayar gets the IA on IVN done before end of March-and uses it for an election platform of what can be done when mutual benefits are invovled...and a win/win situation for investment.foreign investment is created.
Ciao
I agree with most of you comments...was talking about the select few-who actually gain by keeping the average Mongolian citizen in adject povertry.
I am not a Ivanhoe StakeHolder-but I can see what effect the GOM is having by catering to special interest groups instead of doing what needs to be done-giving economic opportunity to the Yak Herders of Mongolia-to join the modern age-see infrastructure buildouts-roads...bridges-utility stations created...socio economial spin offs from the support industries that will be needed...ast he services sector in Monoglia will grow leaps and bounds-to keep the mining industries operational...the GOM tax coffers will balloon and the standard of living will increase across the board-if Bayar is smart enough to see that road backwards is paved with nothing but gravel and detours that lead nowhere...on a trip with the Russians and the Chinese in their prior lives-that went nowhere-and giving the West the opportunity it needs to get things going-as only the free flow of capital and goods in a market society can deliver...is what is needed...Western money...western technology-and western business ...best of breed...business practises.
Canada has become one of Mongolia's best friends...given Mongolia is still subect to the rule of law...the World Bank...and WTO and the UN-I think International agreements for a forvabe investment climate in Mongolia will be worked out.
Because the true costs of them not being worked out-will set Mongolia back even further down the path of realizing its potential and joining the world economies of this world...then where it exists right now...and fwiw I believe Bayar knows this...and that the path his is charting is forwards...where it paved with opportunity-yes some risk...but with risk comes reward...and your level of reward is always comensurate with the level of risk invovled...and for once in a long long time...I am hopefull that the dollars invested with filter its way down the to the average Mongol in the street..instead of just rich Mongolian Party fatcats getting fatter and the havenots winding up with less then they have already.
Mongolia should set up an endowement trust fund much like Alberta does in Canada on their oil patch taxes and concesssions...that would be a rainy day fund for Mongolia to draw on to fund state projects that bring a benefit to all.
However me thinks they would needs some strong oversite and oversteer managing a fund that would be quite large in numbers...to ensure the corruption that exists in Mongolia...both apparent and hidden in the shadows...did not use the funds for personal motives.
I think Bayar gets the IA on IVN done before end of March-and uses it for an election platform of what can be done when mutual benefits are invovled...and a win/win situation for investment.foreign investment is created.
Ciao
Wow some people get really mad that they are not gonna exploit a poor nation like Mongolia.
You people don't even listen to yourselves. What are you talking about? Totally illogical! Just panicking out of fear that you may fail to steal a poor nation's minerals, under the cover of FDI.
To start with, Mongolia hardly has yaks as such. It is Tibet that has yaks!! Mongolia's primary 5 types of livestock (horse,camel, cattle, sheep, goat) do not even include yaks. (Pig, chicken, goose, yak are considered "imported" husbandary - secondary, if you will.) Pls, notice that at least.
2) Mongolia has Russia!!!! - who wants to use her money and expertise to explore those sites!!!
Hello???
3) In other words, Ivonhoe is not the only option we have. So pls, stop threatening Mongolia, as if Ivonhoe were going to be the savior of the country, something.
4) Who said Mongolia is gonna start "feeding the livestock or the population" when/if Ivonhoe is let to use the Oyu Tolgoi?
5) BTW, Mongolians are not starving. That is not the issue (Just compare Africa and Mongolia. Maybe you'd rather talk of hunger over there?). Mongolians have lack of built accomodidation (- which Russia is promising, not Ivonhoe).
The last comments match the reality and are mostly true, except the statement saying Mongols are not hungry as Africans.
The country is poor and most people are poor and hungry!
So don't pretend that the situation today is o.k.
It is very close to become a country similar to an African.
We need a western technology and I think it is the best solution regarding Oyu tolgoi and other big deposits. We have already enough joint ventures with Russia and one should try to keep balance and not go deeper in a "love relationship" with one country. By the way, the west has so far a leading position in this business so we need to learn latest technology and "know hows".
To Sodon,
My dear, what can I say? especially here in Internet.
I wish you lived like myself in the West (both USA and Western Europe) for long and would see things more clearly/maturely and had a more comparative perspective on matters, e.g. hunger or "admiration of the west".
I understand that you want to belive in salvation by western companies. But that is an illusion. "The grass is greener on the other side", always! Illusion.
I know Mongolians are poor. I've been in and out of the country over 15 years, seeing the heart-breaking misery over there. But that is not gonna be saved by western companies!!! Believe me.
(However tempting the picture of the so-called "western technological transfer" is in your mind)
Belive it or not, Mongolians should rely on Russia again during this downturn of history. Mongolia doesn't have TRUELY globally thinking intellectuals yet, (unlike India or even China) so Mongolia will be taken advantage on by western companies. Until Mongolian intellectuals get wiser and global, Mongolia should wait in "cooperating" with private companies from the West.
Do not repeat others' mistake. Ironically. Do not repeat Africa's mistake. Africa also welcomed western private companies and the result is what you now fear! :))
All the prosperous nations of Asia such as Japan, South Korea, Ssingapore, China, Taiwan etc. benefited from United States and European investments and economic policies.
Name one country that has had sustained economic growth as the result of Russian investments.
It is questionable if the Soviet Union or now Russia has had sustained economic growth? Ha!
Well, I agree with the last comment by an "Anonym..." and just wanna again argue about what the "Anonym..." said who left a comment for me. Thanks by the way, and forgive my poor English too.
It would've been easier to address you , Gentlemens, if you leave a name instead of "Anonymous", even a fake one, so that I can address you by such "name".
My dear, I don't want believe in salvation by western companies, I want believe in better technologies.
You might be a "Russian fan" and I understand and respect your opinion, but we don't have to rely only on Russians. The heart-breaking misery is not gonna saved by Russians too. You said Mongol intellectuals are dumb and we should wait and work with Russians (or let them teach us) until we get wiser and smart, and then say Goodbye to Russians and Hello to Westerners?! That is one of the dumbest thing Ive ever heard and at the same time very insulting! Any idea how long we should wait?
Who says that Western companies will take advantage of us, and the Russians won't? It depends on us who we choose, and western companies didn't ruin Africa. Africans are to blame for the poverty and the ruin because they couldn't manage a good and profitable policy. So it depends a lot on the host country.
Lastly, just wanna repeat what the latter "Anonym..." said: Take an example how the other Asian countries have benefited from the better technique and technology.
p.s. I was fortunate to be for quite some time both in the US and West, so I know whatI am talking about.
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