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.