Mongolia Minerals Law Threatens Coal Project, Group Says: "Proposed changes to Mongolia’s mining laws threaten the viability of the nation’s biggest coal project at Tavan Tolgoi and will further deter foreign investment, the Business Council of Mongolia said.
The legislation, which will give the state the right to a free stake in many mineral projects, will take the country away from the free-market principles practiced there since the early 1990s, Mongolia’s largest business group said in a four-page letter sent to President Tsakhia Elbegdorj’s office on Jan. 7.
The letter, made public by e-mail yesterday, came after the draft laws were published last month. Enlarge image A worker stands by the arm of a digger in a coal mine in Mongolia. Mineral product exports account for more than 90 percent of the country’s exports. Photographer: Doug Kanter/Bloomberg Overseas investment in Mongolia, which relies on minerals for more than 90 percent of its exports, has cooled since a law last year restricted state owned companies from controlling strategic assets. "
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The legislation, which will give the state the right to a free stake in many mineral projects, will take the country away from the free-market principles practiced there since the early 1990s, Mongolia’s largest business group said in a four-page letter sent to President Tsakhia Elbegdorj’s office on Jan. 7.
The letter, made public by e-mail yesterday, came after the draft laws were published last month. Enlarge image A worker stands by the arm of a digger in a coal mine in Mongolia. Mineral product exports account for more than 90 percent of the country’s exports. Photographer: Doug Kanter/Bloomberg Overseas investment in Mongolia, which relies on minerals for more than 90 percent of its exports, has cooled since a law last year restricted state owned companies from controlling strategic assets. "
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