A senior official at the Ministry of Mineral Resources and
Energy, B.Batkhuu, has said Parliament needs to give a clear direction on the
extent and nature of State participation in mining, and on the status, quality,
and exact nature of private-public partnership. The 2006 Minerals Law has laid
down the general concept, but “now we need to establish specifics so that
foreign and local investors know exactly where they stand and what to expect”,
he said, according to The Mongolian Mining Journal.

Defending the now-to-be-repealed windfall profits tax, he
said many other countries also impose taxes on high revenues, “but our
application of the principle was not very efficient”. It brought revenue “which
allowed us to address some pressing issues such as providing electricity
connection to all provinces and introducing a number of social welfare
programs, but finally turned out to be a step backward for the mineral sector”.

He regretted that the “irresponsible behavior” of a few
companies taints the popular perception of the entire mining sector. People are
also unhappy when proceeds from taxes are not utilized for the benefit of local
development. The minerals sector has been making wide and rapid expansion in
the last few years and deserves a research institution to serve its needs.