Alan Levine via Flickr CC0Mongolia reverses its stance on the banking regulation
In response to Rio Tinto and IMF, the government of Mongolia retracts its banking regulation.
Vaiz Ha via Flickr CC2.0 Banking Regulation
Mongolia puts in place a new Banking regulation: obligation to use local bank services. The law requires all foreign multinationals to use local commercial banks to transfer funds in and out of the country. The law, announced in April, was meant to increase the country’s foreign currency reserves, while also strengthening the Mongolian banking sector.
Felibrilu via Flickr CC2.0 Mongolia adopts the Minerals Policy
Otherwise known as “The Policy,” this new policy on the minerals sector serves as a framework for further amendments to the existing mining law and other laws relating to natural resources. The aims of the policy include strengthening private sector development and establishing a stable investment environment. It retains the strategic deposits clause.[1]
Brucke-Osteuropa via Wikimedia CC0Agreement signed to provide Oyu Tolgoi with power from Tavan Tolgoi
An agreement is signed between the IFC, the ERBD-financed Oyu Tolgoi LLC, and the Mongolian government for the purchase of power domestically, as well as the memorandum for the power purchase between Mongolia and the Tavan Tolgoi coal-based power project. The transmission line from the Tavan Tolgoi plant will provide electricity solely for the Oyu Tolgoi mine. [1]
123rf.comThe Investment Law of Mongolia passes
This new Investment Law reverses the 2012 Investment Law (SEFIL), provides foreign investors with the same protections as domestic investors, and eases regulatory approval requirements for foreign private investment. [1]
Article 1: “to encourage foreign investment, to protect the rights and property of foreign investors in Mongolia, and to regulate matters relating to the operations of business entities foreign investment.” (Jargalsaikhan 2016: 7; Lander 2013)
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Brucke-Osteuropa via Wikimedia Commons CCMongolia tries to amend the 2009 Oyu Tolgoi Investment Agreement
Mongolia aims to raise the government stake in the Oyu Tolgoi mine from 34% to at least 40%, change the set royalty rate of 5% to a sliding rate up to 20% in line with copper prices, and eliminate the income tax allowance. [1]
MaximP via ShutterstockNew Foreign Investment Law passed
The ‘Strategic Entities Foreign Investment Law’ (SEFIL) / ‘Business Entities Operating in Sectors of Strategic Importance’ is passed. This law limits foreign investment and ownership in sectors like mining to 49%, and is perceived by the mining sector as resource nationalism[1].
Gerd Altmann via Pixabay CC0Mongolia cancels its tax treaty with the Netherlands
Turquoise Hill Netherlands is a little-known Amsterdam-based company with three employees, no office, and not even its own mailbox. To the government of Mongolia, though, the company represents billions in taxes that it will never see[1]. See full analysis by SOMO[2].
[1] http://www.reuters.com/article/us-dutch-mongolia-tax/special-report-in-tax-case-mongolia-is-the-mouse-that-roared-idUSBRE96F0B620130716 retrieved 7 September 2018 [2] https://www.somo.nl/wp-content/uploads/2013/06/Should-the-Netherlands-sign-tax-treaties-with-developing-countries.pdf
Bruno Glätsch via PixabayWindfall Profits Tax on copper and gold is repealed
Ivanhoe and Rio Tinto successfully negotiate that the Mongolian Parliament repeals the Windfall Profits Tax of 68%, so the Oyu Tolgoi project can proceed. Along with it, the corporate income tax was eased as well, for losses to be carried forward for 8 years (up from two).[1]
Dennis Tang via Flickr CC2.0National Development Strategy
Millennium development goals-based comprehensive national development strategy of Mongolia[1]. Aspiration to be a middle-income country by 2021, with an industrialised knowledge based economy and high human development standards.
[1] http://siteresources.worldbank.org/INTMONGOLIA/Resources/NDS_DRAFT_ENG.pdf, retrieved 7 September 2018, see also Lander 2013.