By Elena Fehrbach
May 5 – The Government of Mongolia has approved 8 percent interest rate for long- term housing loans. The duration of the loan can be up to 20 years for the purchase of both old and new houses and apartments with the total area not more than 80 square meters. The compulsory condition is the provision of deposit in the amount of 10 to 30 percent of the purchase amount. Continue reading
By Elena Fehrbach
May. 2 – The Government of Mongolia is expecting the fuel prices in Mongolia to stabilize due to diversification in the quantity of fuel suppliers. The current situation in Mongolia is almost 100 percent fuel dependence from Rosneft, one of the key fuel producers in Russia. Such direct dependence causes unexpected fluctuations in fuel price due to company’s corporate and regional conditions. The Deputy Minister of Mongolia is discussing the amendment to the fuel purchase agreement allowing Mongolia to buy fuel from Rosneft based on international market prices. Continue reading
By Elena Fehrbach
Apr. 18 – Oil shale in Mongolia has been on the radar of technical experts and investors for a number of years already, but the actual potential of oil shale development in Mongolia has never been widely discussed. Preliminary “greenfield” estimates assume 800 billion tonnes of oil shale are available in Mongolia. The preliminary estimate was completed in 1990 based on exploration of about 19 per cent outlined oil shale area. Though the final amount of oil shale is not defined yet, it is clearly a promising opportunity for Mongolia to establish a fuel independence. Continue reading
By Elena Fehrbach
Apr. 15 – Ch. Saikhanbileg, Minister of the Cabinet of Mongolia met Francisco J. Sanchez, the Under Secretary for International Trade of the U.S. Department of Commerce to discuss economic and trade cooperation between 2 countries. During the meeting, the Minister noted that Mongolia is willing to widen the economic relationship between Mongolia and USA. One of the important steps taken by the Ministry recently is introduction of the amended Strategic Foreign Investment Law creating encouraging investment opportunities for private companies. Continue reading
By Elena Fehrbach
Apr. 8 – The Government of Mongolia has approved the investment structure for proposed Sainshand Industrial Complex, where 66 percent of investment is expected to be foreign. The preliminary feasibility study conducted by Bechtel Group Inc., a civil engineering company from the USA, shows that more than 10 billion USA investment may be required in total to fund the project, out of which 4 billion USD required to build the power distribution system and waste storage facility. The Development Bank of Mongolia is currently deciding on lending of approximately 10 million USD needed to cover the technical studies preparation. Continue reading
By Elena Fehrbach
Apr. 2 – The capacity of the planned power plant at Tavan Tolgoi coal mine will be increased from previously planned 300 MW to 450 MW. According to the Ministry of Energy, the capacity of the future plant should meet the needs of Tavan Tolgoi coal mine and help Oyu Tolgoi with power supply. Power plant will be fueled by the coal from Tavan Tolgoi. Continue reading
By Elena Fehrbach
Mar. 1 – Legal reform is continuing in Mongolia. Release of the new Strategic Foreign Investment Law draft in May 2012 is followed by release of the new Minerals Law draft. Minerals Law is truly considered to be one of the most important legal documents in Mongolia where 90% of all exports is occupied by different mineral commodities.
The current Minerals Law was adopted in 2006. The next step was taken on 17 June 2010 when the Government has issued the moratorium on issuance of the new exploration licenses. The moratorium was supposed to be in place until 31 December 2012, the date when the new Mineral Law was assumed to be adopted. Recently conducted plenary session has extended the moratorium term until the new Minerals Law is adopted. The current status of new exploration licenses issuing keeps local and foreign miners concerned about the opportunity to extend the portfolio of licenses by issuing and/or tender process, as the date of adoption of the new Minerals Law is not defined yet. Continue reading
By Elena Fehrbach
Feb. 18 – A delegation of government representatives from Mongolia headed by the Deputy Minister for Mining has visited Russia to discuss fuel trade issues with representatives of the Ministry of Energy of Russian Federation and Rosneft fuel producing company. The Government of Mongolia has made an attempt to clarify the import conditions with the major supplier of fuel into Mongolia. According to the estimates completed by the Central Bank of Russia, the export price for fuel delivered to Mongolia is about US$300 higher than export prices for other countries. It should be noted, that the current volume of fuel export from Russia to Mongolia is about 95% of the total scope of fuel import to Mongolia. Continue reading
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