State Secretary of the Ministry of Mineral Resources and
Energy  Khurelbaatar has said that work
on the Asgat silver deposit can begin if investment issues are resolved. Over
50% of the total territory of Bayan-Ulgii province is covered by exploration
licenses, but this large and strategic deposit still lies idle even though a
feasibility study was made as early as 1976. The issue was discussed by the
2004-2008 Parliament but no decision was taken, as many MPs were wary about
Russian interests. At present, a working group is assessing the possibilities
of beginning work.

Khurelbaatar made the comment when he was in Bayan-Ulgii,
also known as the homeland of the Kazakh people, with Prime Minister S.Batbold
on his tour of the countryside. Apart from this assurance, the Prime Minister
also announced some projects for the western province. A 65-km paved road
toward Ulgii-Khashaat will be built, the Ulgii airport will have a sturdier
runway costing MNT11.1 billion, and MNT1.7 billion will be spent on a sports
complex. Batbold told the local people that better and stronger economic ties
with Russia and Kazakhstan will be beneficial for them.