What is the importance of heavy industry being closely associated with the mining sector?
Mining and heavy industry are inseparable sectors. Our government believes that the Ministry of Mining and Heavy Industry must be responsible for developing the development policies of both sectors, ensuring project implementation and coordinating actions. The Ministry set objectives to develop ferrous and non-ferrous metal factories, machinery, and equipment, along with crude oil, coal, and chemistry factories.
The government shall ensure stable economic growth through the selection and development of feasible projects in the mining and heavy industry sectors. For development and implementation we are aiming to attract foreign and domestic investment, create favorable tax environments, ensure the long-term stable development of heavy industry, and improve Mongolia’s competitiveness in the global minerals market.
What policies will be carried out in mining and heavy industry for the next four years?
Our government will continue carrying out large-scale projects such as Oyu Tolgoi, Tavan Tolgoi, and infrastructure projects without interruption, along with the development of other large-scale deposits of strategic importance. All of these shall ensure income resources to be allocated to every Mongolian citizen.
For the heavy industry sector, a new crude oil processing plant will be constructed and commissioned using domestic crude oil. The plant will create over 1,000 jobs and cut spending on imported petroleum products. As part of finalizing industrialization mapping and policy, heavy industry plants (a metallurgical complex in the Darkhan-Selenge region, and a copper cathode plant to process copper concentrate from Oyu Tolgoi and Erdenet) will be constructed.
What favorable environment and conditions do you offer to foreign investors? What actions will the government take?
The Parliament recently discussed and ratified the government action plan for 2016-2020. The action plan includes an objective to protect the rights and interests of foreign investors by creating “stable and favorable policy, cooperation, and a legal environment for foreign investors; improving the enforcement of international conventions and contracts, and national legislation relevant to their interests; and consistently implementing a policy to attract foreign investment in infrastructure, mining, energy, agriculture, tourism and other sectors”.
A new council to protect the interests of investors was established within the Cabinet Secretariat. A working group was formed to address any issues, such as investors and entrepreneurs being intruded upon illegally by state and legislative organizations, bureaucracy being faced, and being investigated on illegal grounds, and will make recommendations based on their findings. The working group will focus on issues that harm the interests of investors, including illegal coercion, bureaucracy, and exit bans, and will work towards ending such cases.
The responsibilities of the newly established National Development Agency under the Prime Minister include conducting studies on investment, developing investment projects, and providing recommendations. The government plans to carry out a series of actions to improve investment and the business environment.
Source: Mining & Money magazine
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Монгол эхийг энд дарж уншина уу