The Canadian government will contribute
CAD270,000 in funding to support social projects near Centerra Gold”s Boroo mine site in
north-central Mongolia, its International Trade Minister Peter Van Loan has
revealed. The funding, which is being contributed through the Government of
Canada”s Investment Cooperation program, will support environmental and
vocational training and community development initiatives at the Boroo mine.

The two countries are in negotiations towards a foreign investment promotion
and protection agreement (FIPA). At the end of 2009, Canadian direct investment
in Mongolia totalled CAD601 million. Bilateral merchandise trade between Canada
and Mongolia has grown more than 60-fold in the decade between 2000 and 2009,
from CAD2.6 million in 1999 to CAD163.8 million in 2009.

A
bilateral FIPA would provide greater predictability and certainty for Canadian
investors considering investment opportunities in Mongolia, the Canadian
government has commented.