THE LAW ON FOREIGN INVESTMENT REGULATION TO BE AMENDED
PARLIAMENT WILL SOON DISCUSS A DRAFT LAW ON FOREIGN INVESTMENT REGULATION IN TWO VERSIONS.
THE FIRST DRAFT HAS BEEN PREPARED BY SOME MPS HEADED BY Z.ENKHBOLD IN 2009 AND THE SECOND BY SOME MPS HEADED BY G.ZANDANSHATAR IN 2010.
Foreign countries pay attention to the draft law discussion because Mongolia will change foreign investment policy and inviting policy to be changed by regulating and monitoring trends. In other words, activity of Foreign Investment and Foreign Trade Agency (FIFTA) would be renewed by the draft law.
Press write shares sell of SouthGobi Sands LLC in days and the company is the smallest part of SouthGobi Resources Ltd. Between them locates SGQ Coal Investment Pte.Ltd. What has stated the company structure?
The structure is speculation net of mineral resources sell in Mongolia. Big companies work in Singapore and Canada raising capital from Gurvantes soum of Umnugobi aimag in Mongolia. The structure of company sells special licenses of Nariin sukhait deposit mine not paying tax despite of Nariin sukhait is one of strategic deposit 15 mines of Mongolia. There would be raised question in other deposit mines.
The Government of Mongolia owns 96 percent of Tavantolgoi deposit mine, 75 percent of Baganuur coal mine and 51 percent of each Erdenet and Asgat. But companies from China and Canada own from 51 to 100 percent of some strategic deposit mines of Mongolia.
That means Mongolians have not monitored other 39 large deposit mines and 100 mines. That is why legislation is needed to regulate foreign investment to strategic deposit mines and to monitor shares of foreign companies.
If Parliament would ratify the draft laws, a part of Nariin sukhait would not be sold. Foreigners have to understand they could not sell mines without permission of the Finance Ministry and FIFTA.
The draft laws would also relate to security of communication, food, water, biology reserve exploitation and flight but not only mineral resources sector. The draft laws instruct that foreign investment should be limited by 15 percent at strategic deposit mines along permission of Mongolian organizations.
If the draft laws would be passed, strategic deposit mines’ owning percents would be changed. Besides, other 8 or 9 laws would be amended along the draft laws passing.
SOURCE : NEWS.MN
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