MIBG Breaking News: Draft Minerals Legislation Not To Be Addressed Before Elections

February 26 -- MIBG has learned that President Elbegdorj Tsakhia has announced that the Draft Legislation will not be used as a political platform for his re-election campaign in the June Presidential elections. As such, the Draft Minerals Law will not be addressed in the spring session of Parliament and will instead be presented in the second half of the year. Additionally, President Elbegdorj has acknowledged that various stakeholder interests have not been included in the Draft. To this end he wishes to broaden the membership of the Steering Committee by diversifying participation to include further industry representation.

In addition to those announcements directly concerning the Draft Legislation the President has also ordered the Minister of Mining, Mr. Gankhuyag Davaajav, to develop an Official Minerals Policythat will act as a guide to the Government's decisions within the Minerals Industry.

Upon completion of the Minerals Policy the President has advised that the Draft Legislation will be assessed based on the principals of the Policy in order to ensure compliance with the Government's mandate. Additionally, President Elbegdorj has stated that the assessment should focus on the possibility of subjective decision making in order to further the fight against corruption in Mongolia.

Once the Draft Legislation has been assessed against the Government's Policy the Draft will again be brought to stakeholders and the Steering Committee, including wider industry participation. During this time the Steering Committee will again assess the viability and acceptance of the law by the wider public sector community.

MIBG believes that the announcements made today at the Presidential Steering Committee meeting represent a true acknowledgement of the diverging opinions between foreign investors and market participants to those of the Government of Mongolia. We maintain that further prolonging of the Draft Legislation has the potential to extend uncertainty in the market. However, our core view that the Draft Legislation will be passed in H2 after being softened through industry participation is playing out. We strongly believe that Mongolia will remain "open" to foreign participation and that the new Legislation will be amicable to all involved parties.

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