Negotiators on Oyu Tolgoi gold and copper investment agreement agreed to be tight-lipped.

Both teams from Government of Mongolia and Ivanhoe/Rio are negotiating literally from dawn to dusk.

Teams agreed not to disclose anything to public without notifying each other first.

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PM Bayar received chinese children recuperating in Mongolia

Today, Prime Minister Bayar Sanjaa received sixty children and seven teachers from Chinese region of Sichuan hit by earthquake last year. The meeting was held in a government hall. Prime Minister Bayar said " our two countries are neighbors sharing thousands of kilometer long border. We, Mongolians share the suffering and hardships you had to go through last year. Nobody knows when disaster and calamity will strike. It is duty of a good neighbor to help others when disasters hit them.

Nairamdal camp which you are staying is a very small part of Mongolia. Mongolia is a country with ancient history and of beautiful natural environment. I want you to make friends with Mongolian children who can teach you our customs and history and culture."

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Chinese pupils arrived in Mongolia to recuperate

Sixty pupils from Sichuan province of China hard hit by earthquake in 2008, has arrived in Mongolia this morning for eight-day recuperation. The chinese children were invited by Prime Minister Bayar Sanjaa when he was in China during opening ceremony of the 29th Summer Beijing Olympics last summer.

This afternoon, the Chinese children were welcomed by Mongolian National Authority For Children, a government agency which will facilitate their stay in Mongolia. The children are staying in "Nairamdal" (Friendship) camp, former 'international Pioneers' summer camp, situated about 30 km away from Ulaanbaatar.During the tour, the children will familiarize themselves with Mongolian customs and culture and act with Mongolian children to promote cultural awareness between the two countries.Tomorrow, Prime Minister Bayar Sanjaa is expected to meet with the Chinese children in the Government house.Togtokhnyam, Chairwoman of the Authority for Children said during the reception " Mongolia welcomes the Chinese children which experienced hardships and trauma of the devastating earthquake. May you rest well in Mongolia and recuperate. Mongolian children will share with you Mongolian toys and culture and hope you will like them." Mongolian children warmly welcomed the Chinese children and together they danced in the tune of song "if you are happy, clap your hands".

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Draft law to amend current Minerals law submitted by two lawmakers

Lawmakers, Batbayar Nyamjav (MDP) and Byambatsogt Sandag (MPRP) have submitted a draft law to amend the Minerals law to Speaker Demberel Damdin on July 29, 2009.

The draft law proposes to reduce 30 year duration of investment agreements to be concluded over strategically important mining deposits down to 15 years. Currently, Oyu Tolgoi draft Investment Agreement has 30 years duration for initial term. If the amendment is passed before OT IA approval, duration of the first term of the IA will change to 15 years accordingly.

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International Relief Efforts for Mongolian Flood victims continuing

South Korean Embassy in Ulaanbaatar and Korean Residents' Society in Mongolia and Food Aid international aid agency have donated 1000 pieces of clothes to Mongolians hit by recent floods. The donation was handed out to about 200 households of the Bayanzurkh, Khan-Uul, Songinokhairkhan districts of UB which are hardest hit by the flood.Staff and teachers of the Korean invested University "Ulaanbaatar" donated two million Tugrig for children of the households to buy school supplies

Vatican Representative office in Mongolia and relief Society "Jubilee" also handed out clothes to childen and elders of flood hit areas of Ulaanbaatar.

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World Vision assists with urban flood relief

World Vision is providing food, clothing and bedding to 1,080 families after flash floods hit Ulaanbaatar, the capital city of Mongolia in mid-July.
World Vision staff are now distributing food, clothing and bedding after sending assessment teams to some of the worst-affected areas in the capital. Hygiene kits are also being provided to families and hospitals.

To assist with the clean up of flood-hit areas, World Vision is providing chlorine disinfectant and 39 trucks for mud removal.
Flooding started on July 16, killing 24 people and destroying hundreds of homes. Conditions worsened a few days later when more storms lashed the city, making it some of the worst flooding Ulaanbaatar's seen since the 1960s.
The International Federation of Red Cross and Red Crescent Societies (IFRC) reports that more than 1,975 families have been affected, with 124 left homeless. The local government estimates more than 1000 gers (households) have been carried away by flood waters.
The floods resulted in the loss of livestock, damage to bridges and power stations and blocked roads. Residents struggled to contain overflowing toilets, putting flood-hit areas at risk of the spread of disease.
The worst affected areas of Ulaanbaatar are Bayanzurkh and Khan-Uul districts.
Flash floods are an annual occurrence in Ulaanbaatar, which has poor drainage systems and widespread poverty.
For further information please contact
Humanitarian Emergency Affairs officer, Byambatseren Adiya.
Email: byambatseren_adiya@wvi.org
Office: 976-11-345323

For media interviews please contact
National Director, Alex Snary.
Email: alex_snary@wvi.org
Office: +976-11-345464
Cell: +976-99117650

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U.S. Embassy in Ulaanbaatar, Provides Emergency Relief for Flood Victims

Flood relief efforts are continuing in Ulaanbaatar and Govi-Altai aimag. The flood claimed lives of 24 people and caused much property and economic damage in Ulaanbaatar and Govi-Altai aimag.Now, US Embassy has joined the relief effort.
On July 27th the U.S. Embassy in Ulaanbaatar announced that it is providing $25,000 in emergency relief assistance for the victims of last week’s flash floods that were caused by heavy rain. The assistance is being provided by the U.S. Embassy through the Mongolian Red Cross which will purchase the relief supplies, transport them to the affected ger districts and begin distributions of these relief supplies this week.

With the funds donated by the people of the United States of America, the Red Cross will purchase wheat flour, rice, vegetable oil, sugar, tea and salt to distribute to flood victims in the Ulaanbaatar ger districts of Songino-Khairkhan, Khaan-Uul and Bayanzurkh. The Red Cross will also use the donated funds for food distributions in flood affected areas in Gobi Altai aimag.

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From Mongolian Press: Interview with Batbayar Nyamjav, Mongolian Democratic Party lawmaker on Oyu Tolgoi Investment Agreement

Mongolian news website (www.news.mn) run by newspaper "Ardiin Erkh" interviewed Batbayar Nyamjav, Mongolian Democratic Party lawmaker on July 29, 2009. I have translated the parts related to Oyu Tolgoi investment agreement.
-Everybody is saying Ivanhoe Mines might leave Mongolia since the Great Khural delayed the Oyu Tolgoi investment agreement through certain condition! You was in the center of this action of the Khural?
- According to Mongolian Constitution, State Great Khural represents Mongolian state. Khural made a decision and gave the Government the right to execute the agreement.
- Draft Investment Agreements on Oyu Tolgoi were discussed by the Khural third time. Why this time, Khural pressed to apply the 68% Windfall Profits Tax in the Agreement? The investors feels hurt by this?


- Actually, the Oyu Tolgoi Investment Agreement issue was discussed by the Khural second time. Many people are saying that the issue of passing Oyu Tolgoi investment agreement has been continuing for six years. This is not true. This issue has been raised in Khural and the Government level for about two years. Current minerals law was passed in 2006. Previous minerals law did not have a provision on “investment agreement” , instead it had provision on “Stability Agreement”. Then, the agreement issue was regulated by the law on Foreign Investment. First draft investment law on Oyu Tolgoi was given to the Khural for discussion in 2007. During parliamentary discussion of the draft agreement, Government of Mongolia withdrew the draft. It was not sent back by the Khural. Prime Minister Bayar Sanjaa withdrew the draft agreement submitted by previous Prime Minister Enkhbold Mieygombo after he succeeded him. Next time, in March, 2009, the Government submitted another draft agreement and the Khural discussed it and passed this decision. Therefore, there is no question of delaying the the agreement.
-What if the Oyu Tolgoi agreement is not made because of the conditions put forward by the Khural?
- There is no such thing as agreement must precede before the Project implementation. There are many deposits in Mongolia being developed and used without agreements. If one want have agreement, one can go ahead for it. Also it is perfectly ok not to have an agreement.
- Windfall Profit tax law imposes 68% tax on copper concentrates. Was this draft Oyu Tolgoi agreement was about exporting enriched concentrates?
- This draft agreement is about ore enrichment operation. We passed the 68% Windfall Profits tax law with the intention of producing end products and goods in Mongolia and develop Mongolia and improve living standards of our people. The more Mongolia produces end products and goods here, the more profit we will enjoy. Now look at Mongolia! Before 1990s, we were raw materials supplier for then Soviet Union-Russia. Since 1990, we are supplying raw materials for China. A country which directly exports its raw materials without adding value to it, can never develop as most of profit to be made from raw materials shifts to other side. In another word, this tax was raised as economic leverage to lay industrial foundation in Mongolia. This is the only intention. Therefore, if you don’t want to pay the Windfall tax, then build copper smelter here. The concentrate is 75% earth and 25% copper. If build smelter here, it will produce 99% copper. This will benefit Mongolia.
- Then why Ivanhoe Mines is backing off from building smelter if they don’t’ wan to pay the tax?
- In the end, they just want to sell Mongolian resources to China! This is their main interest. It does not matter if one has Mongolian, Russian, Chinese, American or Japanese name; everybody would want to sell Mongolian commodities to China. China is the market. Chinese also interested to buy concentrates from Mongolia. We want to produce copper here as we want to have more profit from our resources and commodities. If we can produce copper here in Mongolia, we can export it to anywhere in the world, not only to China. We would have more opportunity. Intention is to reduce economic dependence from our two neighbors. If Mongolia have production of copper, car engine plant can be developed here. Also can produce computer parts and cables. These can be exported to US, Japan, Korea. However, concentrate can be exported only to China.
- The above issues are next issues. Now the question is what to do in order to develop the Oyu Tolgoi? What if Ivanhoe Mines backs out of the deal?
- Who said they are backing out?
- The columnist Baabar and many other people are saying and writing so. Oyu Tolgoi is handed out to China etc!
-Baabar is a columnist. On the other hand, he is a columnist paid by mining lobby. He is saying Ivanhoe is backing out of the deal. However, share price of Ivanhoe Mines on New York Exchange is gaining. On July 1, when Democratic Party’s parliamentary group decided to discuss the Oyu Tolgoi agreement, share price of Ivanhoe increased by 23%. Today, it is increased by 61%. Look at this chart. On July 30, the share was worth 5.60 US$ . Now as of July 27, it is 8.16 US$. The Khural passed the resolution on authorization of the Government on July 16. Then the price of the IVN share plunged to 7.72 US$. Now it is going up and reached 8.16 US$. If the Khural made a wrong decision then, how come the share price of the company is gaining and going up? Copper price on July 15th was 5200 US$ per ton. Now it is 5500 US$. We, Mongolians are a people born with “golden spoon”. It was not an accident that the Chinggis Khaan conquered the world and we inherited this vast territory with much resources. We are living poor because of our poor skills. Now you look and see if Rio Tinto will back out of the deal. One thing that sets straight various lies and rumors is price of shares.
- If so, why Ivanhoe Mines is refusing to pay this tax set by law. Or maybe our government is working for them? The minerals law says Mongolia’s share is to be 34%!
- It is either way. Multinational companies basically plunder small and underdeveloped countries. They demand for certain conditions for operations and use various tricks to secure these conditions. They push for laws that will benefit them and then disappears. Mongolia is not an African or South East Asian country. We have 800 years of statehood. When Mongolian empire existed, there were no America, Australia and Rio Tinto. But Europe was there. Here, I got a little emotional (smiling). If one wants to work in Mongolia, it has be according to Mongolian laws.
On the other hand, they call themselves investors. Someone without money can not be described as investor. Right! Will you rent your place to someone without money? Proposal of Ivanhoe Mines is like “you rent me your place free and then I will rent it to someone else and you will get a cut. “ They admitted that they don’t have funding and it will take two years to raise funds and capital. Whose land and resources they are using to raise fund and capital? Investment agreement is a guarantee of a government. They are going to rais fund and capital using our resources and guarantee of our government! Then how come they will skim cream and we leave with leftovers. If Government can make guarantee, any of our Mongolian company can raise funds and capital. Then, we should develop the deposit by ourselves. Oyu Tolgoi is not first copper production of Mongolia. We have “Erdenet” plant which has 30 year history and knows how to deal in international market. However, we can not chase them away from deposit discovered by them.,. At the same time, they can not act like they are masters of the deposit. Our Mongolian companies area getting funds by saying “ we have mineral resources and you provide necessary capital “ to foreigners and evaluates 1 ton of gold as 1 million dollars. Why can’t state can not do same? There are 1000 tons of gold in Oyu Tolgoi deposit worth about one billion dollars. Why some of our people are fighting to execute an agreement that will greatly benefit other side? It shows that there are certain interest is mixed here. Therefore, it is a relative issue that anybody can twist and explain according to their interest. Investment agreement means keeping current tax environment stable. But the investors went beyond that and demanding tax exemptions.
- Will our condition remain same if Chinese company comes instead of Rio Tinto?
- Rio Tinto is a company and Mongolia is an independent country. Independent country have own territory and land and laws. Independent country have a right to choose its fate and nobody has a right to interfere in it. This means we have a right to do what we want and if somebody pushes something we don’t want, it means interference in affairs of independent country. Therefore, we should decide whom we should let in. Another company can come in. Main thing is it must be beneficial for Mongolia.
-There is an overwhelming fear in Mongolia that if Rio Tinto backs out of the deal, Chinese will come?
- It is like scaring a child with talk of monster. China is the biggest advantage of Mongolia. One should use its weakness as advantage and utilize this advantage. Rio Tinto wants to invest in Mongolia. It is not because Rio Tinto loves Mongolia. It is after Mongolia’s resources. Greed is a force that drives up society. To that extent, nobody will refuse from Mongolia’s natural wealth. This is natural. Second, our geographic location puts Mongolia in a very profitable position. World’s largest markets are China, India and Russia in terms of population. These large population centers would need buildings, food, clothes etc. It is our advantage to be between two of the world’s largest market. If we assume that China is the largest world market, Mongolia is the country that have longest land border with China (4700 km long). Also Mongolia is a democratic country with market economy and does not plunder private property.
- What if Government of Mongolia can not execute an agreement? Dismiss the government?
- The Khural gave a task to Government. Let’s wait and see. If government can execute this task, it can work further. If not, it is natural to hold accountability and responsibility. Oyu Tolgoi is guarantee of Mongolia for 100 years. We can not make a mistake here. This is not an issue where we fight each other because of political affiliation and orientation. To that extent, MPRP and Mongolian Democratic Party had no fundamental disagreements over this agreement.
- However, the lawmakers are not united 100% amongst themselves. Also, there is talk that you are blackmailing Ivanhoe Mines to get a cut.
- Well, failed wrestler have many reasons. What is truth? Only time will tell it.
- How is Government of Mongolia’s capacity for this deal?
- Based on this draft agreement, there is no way but to give the government inadequate score. Government is killing our own economy. Construction sector is the leading sector of economy. We have asked the government to support this sector. Now construction season is more than halfway. However, all construction projects have been stalled. Therefore, now it is no use to talk about Government dismissal. This issue will be decided by living standards of people.

Interviewed by B.Semuun

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Re-negotiation of Oyu Tolgoi continues

Yesterday re-negotiation between Government of Mongolia and Ivanhoe Mines on Oyu Tolgoi deposit was launched.Today, the negotiation continued all day. Bayartsogt Sangajav, Minister of Finance and Zorigt Dashdorj, Minister of Minerals and Gansukh Luumed, Minister of Environment and state secretaries of the ministries and officials, lawyers are representing Mongolian Government.

The above Ministers are authorized by the Cabinet to initiate the Oyu Tolgoi Investment Agreement once it is concluded.
For Ivanhoe Mines, Sam Riggal, team led by Commerce Director and John Fonioni, Vice President in charge of Legal Issues are participating in the negotiation.

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Speech of UN Chief Ban Ki Moon in Mongolia

Speech of UN Secretary-General Ban Ki-moon’s speech on opening ceremony of the Think Tank on Trade and Landlocked Developing Countries, in Ulaanbaatar, Mongolia, 27 July.

It is a profound honour to participate in this opening ceremony.

Above all, I want to express my gratitude to the Government and people of Mongolia for hosting this important institute. This is another concrete demonstration of Mongolia’s leadership, solidarity and commitment.


About one out of every six United Nations Member States is a landlocked developing country. These countries face special challenges that are linked to fundamental geographic obstacles. Remoteness from major international markets. Inadequate transport infrastructure. High transport costs.

I am told that here in Mongolia, for example, transit transport costs amount to 8 percent of Mongolia’s Gross Domestic Product. Costs such as these represent perhaps the biggest barrier for landlocked developing countries. There is no doubt that an efficient transit transport system is the linchpin to effectively integrating into the world economy.

To put it another way, being locked in land should not mean being locked out of trade.

This new think tank fills a recognized need for landlocked developing countries (LLDCs). It will provide a centre of excellence for high quality research and policy advice for landlocked developing countries with a focus on economic growth and poverty reduction

It will raise the prominence of these issues on the international stage and provide home grown independent research catering to the specific needs of landlocked developing countries.

The ideas and advice that you generate here can help landlocked developing countries literally from A to Z -– from Afghanistan to Zambia –- from Bhutan to Bolivia.

You are building on a proud national tradition. Mongolia has been a pioneer for landlocked developing countries.

Your country established the Group of LLDCs in 1994 and acted as the first Chair of the group for several years. In 2007, you hosted a meeting of Trade Ministers of landlocked developing countries.

We celebrate your commitment today. But I am also here to express the support of the entire United Nations. The United Nations family is strongly committed to helping landlocked developing countries overcome the formidable obstacles to their development.

More than four decades ago, the General Assembly of the United Nations recognized “the need of landlocked countries for adequate transit facilities in promoting international trade”.

The United Nations Conference on landlocked developing countries and the adoption of the Almaty Programme of Action are a foundation for progress.

The Almaty action plan calls for much stronger support for transport infrastructure development and trade facilitation as well as aid, debt relief and market access.

And, indeed, multilateral institutions and regional organizations have allocated more attention and resources. But much more needs to be done.

I am certain that the work of this centre will go a long way in raising awareness and deepening understanding at the global level. It will help spotlight the special challenges that landlocked developing countries face in integrating in the world economy.

It will contribute to further strengthening the analytical capacities of landlocked developing countries. And it will help them better articulate their positions throughout the world.

The United Nations system looks forward to establishing operational links with this think tank and providing necessary substantive support. This includes the Office of the High Representative for the Least Developed Countries, United Nations Conference on Trade and Development (UNCTAD) and the relevant regional commissions.

Mongolia might be landlocked, but your constructive foreign policy of good neighborhood relations, dialogue and cooperation is the key to unlocking the door to an inclusive globalization and win-win solutions.

Thank you for once again leading the way.

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Photo Report of UN Chief Ban Ki Moon's visit in Mongolia:Part 3

Photo report of UN Chief Ban Ki Moon's visit in Mongolia:Part 3

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Photo Report of UN Chief Ban Ki Moon's visit in Mongolia:Part 2

Photos are courtesy of Batgerel, photographer of Mongolian News Agency www.sonin.mn

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Photo report of UN Chief Ban Ki Moon's visit in Mongolia (July 27, 2009)

UN Chief Ban Ki Moon is visiting Mongolia now. The following photos are about his visit in Mongolia.The photos are courtesy of photographer Batgerel of mongolian news agency www.sonin.mn


Apparently, Mr.Ban is enjoying the visit in Mongolia.

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President Elbegdorj Tsakhia may start his first international visit from India

According to Mongolian Press, President Elbegdorj Tsakhia may visit India in mid September, 2009. The visit was planned during previous President's term.

Prime Minister Bayar Sanjaa is to pay official visit to New Zealand and Australia by early September, 2009.Mongolia and India have ancient cultural and religious links. Buddhism which originated in India spread to Mongolia through Tibet.

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New CEO of ZOOS Bank selected by its board

Shareholders of "Zoos" bank, fifth largest bank of 16 commercial banks of Mongolia appointed Mr.Benjamin Turnbull, American national as CEO replacing Ms.Chudanji, Mongolian national.The move is triggered by European Bank of Reconstruction and Development (EBRD), which owns 25%+1 share of the bank.

According to its website (www.zoosbank.mn), the decision was made according to the bank restructuring plan.CEO Benjamin Turnbull said " new management team comprised of international and mongolian bankers will introduce best banking practices of the world to the Zoos bank and we are confident that the bank will overcome current economic crisis through this move." Mr.Benjamin Turnbull was COO of Khan Bank (Agricultural Bank of Mongolia) under Peter Morrow, the CEO during early 2000. Currently, large commercial banks of Mongolia as Golomt (John Patrick Finigan) and Khan Bank (Peter Morrow) and Trade and Development Bank (John Coppa) have international bankers as CEOs.

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From Mongolian Press: Opinion of Mongolian civic leader on Oyu Tolgoi Investment Agreement

Mongolia have two English weekly newspapers, UB Post and Mongol Messenger. On July 24, 2009, UB Post published an article written by Mr.Jargalsaikhan, former chairman of Mongolian Foreign Investment Agency and board member of Anod Bank and one of the founders of Civic Coalition, a civic group. The story is about Oyu Tolgoi Investment Agreement. Jargalsaikhan is one of progressive minded civic leaders of Mongolia.

Will Sharing be to Mongolia’s Benefit?
The Mongolian Parliament agreed to approve the Oyu Tolgoi agreement after the Naadam festival, two weekends ago.
If that deadline wasn’t met, a different partner would replace Ivanhoe, as the minister responsible for those negotiations warned. It looks like Rio Tinto – Ivanhoe’s partner that owns a 10 percent equity stake – may back out from the option of buying 30 percent shares of Ivanhoe Mines, which was agreed a few years ago. In any case a “dog barking is getting close” as we Mongolians say. The nation is coming to a crossroads after a long ride with irresponsible mining in the past, and it’s a time to choose how much the government should share with the company that found and estimated the huge reserve of gold and copper in the southern mine of Oyu Tolgoi.
The question is, is it worth sharing? It is the duty of society to contribute their opinion when choices are being made in a democratic country, but the final decision is in the government’s hands.

Profit sharing
The Oyu Tolgoi agreement has been focusing mainly on profit sharing for the last few years. Our political leaders have been dividing the “skin of a bear, which is not yet dead”. Meanwhile, the general public has been confused on whether the government will own shares of the company, or own shares of the reserve.
Under the constitution, Mongolia owns 100 percent of the undersurface minerals in Mongolia, which includes the Oyu Tolgoi deposits. Foreign and domestic companies are given rights to explore, and if they find anything, they are given the rights of developing and producing the minerals on behalf of the government. A portion of the proceeds from the sale of the minerals or products will be granted to that company for taking the risk, making the discovery, and developing the mine. The remaining profit is taken by the owner – the state. This is the common business practice all over the world.
The more the estimated amount of gold and copper in the Oyu Tolgoi deposit increased, the hungrier Mongolians were to own a larger share of the mine. There has been an attempt at majority share, and now it has been settled to be a large chunk of the total profits. If the government didn’t receive this larger share, political powers threatened not to give permission for further operations of the mine. Furthermore, they made a law saying not only Oyu Tolgoi’s, but also all ‘strategic deposits” must be owned at a minimum 34 percent by Mongolia.
The reply from the investor was simple: The government has to buy shares of the company and take responsibility as equity owner. The government’s share of the investment will be about US$1.7 billion. If the government can’t invest now, they are given the option to borrow from Ivanhoe and pay later, with an interest rate of 10 percent per year.
This means that if the government does not pay anything in 10 years time (which is likely since it’s running a deficit), the country will be subject to interest payment equal to the principle sum, which in 20 years is two times the amount – in 30 years, three times. In such case, the total required investment for the project (US$5.1 billion) will be paid in time and in total by the Mongolian side. If this is the case, it would be a domestic investment, rather than the expected foreign investment. Even after the money is invested by the country, Mongolians still only receive 34 percent of the profit.
There is also a technical problem of owning 34 percent of Ivanhoe Mines because it is part of a bigger picture. Ivanhoe is listed on the New York Stock Exchange and the Toronto Stock Exchange, and owns a number of mineral mines and deposits in several countries. It has a coal mine in Australia, a coal deposit in South Mongolia (South Gobi Energy resources) and a gold mine in Kazakhstan (Bakhychkir), along with the Oyu Tolgoi project Mongolia. It is technically hard to separate one already listed company.
The only responsible solution to financing the project is a fund, which should be raised at the capital market by Ivanhoe Mines, with the company’s Mongolian shares being owned by another entity like the Government of Mongolia. This would convert the investment into debt, which can be paid back to a mother company.
Production sharing
The first country to use a production sharing agreement as payment for extracting mineral wealth was Bolivia in the early fifties. Since then, this type of agreement has proven to be the best way of meeting the interests of a foreign investor, as well as a host country.
Mongolia used the same production sharing concept in petroleum law and regulations that were adopted in the early nineties. The contributor of this article had first-hand experience working with a team from Mongolian Petroleum Company, which had translated and studied some 60 countries’ petroleum laws and regulations in order to draft the law.
A mineral production sharing agreement is used successfully in a number of countries nowadays, including the Congo, Ghana, Kenya and Libya. The best example is in the Philippines, which uses the agreement as model form with foreign and domestic investors.
The concept of production sharing is first to stabilize the terms and conditions of the agreement and the taxation environment. Secondly the investor is to take full risk of exploration under the laws and regulations of the host country. Third, if they find a substantial reserve of minerals, the investor will have the first right to develop and produce. Upon production, the company will deduct its costs and expenses, and the balance is shared with the host country.
Both sides would agree to whether the whole production goes to full recovery, or a part thereof. In the case of Mongolian petroleum production law, they proceed to 40 percent of total production of a site. The balance is shared by a ratio that is agreed on between the company and the government. The government may receive its share in the form of product, or in internationally convertible currency from the sale proceeds of that mineral. From the day that cost recovery is attained, the sharing ratio is reversed in the favour of the government. In general the sharing percentage is in favor of investors up to the recovery, and reversed thereafter.
The sharing ratio is also dependent on whether royalty payments are made to the host country before or after cost recovery. According to Mongolian mining laws, that royalty payment is five percent from the first day of production.
The government could start with that five percent, then switch to 40 percent when the OT mine achieves cost recovery, with the balance shared 40:60. After recovery, the ratio could be changed to 70:30 in favor of the government. In any case, the important factor is to run the daily journal of total production very accurately in the manner mutually agreed, as well as to hold periodical, independent audits.
The sharing ratio can be changed in the process of negotiations, which is a principle of the typical production sharing contract. Another important term that should be agreed is how many times the agreement can be extended, and for which period in each extension. In this way, both parties would concretely know the exit strategies beforehand.
What is next?
We must complete the agreement as soon as possible. The coming two weeks will be a good time for taking the initiative in the final negotiations. The preferred choice should be production sharing, not profit sharing, as it suits our current conditions. The Mongolian negotiation team is running simulation models with the all terms on the table at the moment, much of which is unknown to the public. This team needs to act fast. The current delay is not because of Mongolian side. Our name on the international capital market shall not be hurt once again.

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Pictures of Mongolian Bikers during Naadam Celebration

Mongolia have quiet few strong fans of motorbiking. Every year, during Naadam celebrations they ride through streets of Ulaanbaatar waving Mongolian flag and drawing attention of onlookers and crowd.
Here some of the pictures of the Mongolian bikers ride on July 11, 2009. Apparently, photos were taken by road crossing close to Central Post office.
Photos are courtesy of Mongolian news site "www.sonin.mn".

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Misleading story on Time Magazine

US Time magazine carried a story " The Neo-Nazis of Mongolia:Swastikas Against China" on its July 24, 2009 issue. The story was written by someone called "Mitch Moxley". Attached picture of the story features "Tse" bar adorned by Nazi leaders portraits and wax statue of Nazi military officer in glass. The caption of the photo says " Tse bar, a far-right hangout in the Mongolian capital". It is very misleading caption. Tse bar is chain of bar-restaurants. It is not considered expensive and therefore, draws younger, teen crowd with less money to spend. The notion of political left and right is very much blurred in Mongolian politics as two largest parties, Mongolian People's Revolutionary Party and Mongolian Democratic Party both engages in social wellfare programs modelled after Scandinivian countries. With European socialist ideas and notion that equality for all prevailing, it is hard to define who is the "far-right" in Mongolia!

One can not categorize teen hangouts as "Tse" bar restaurants as dens of "far-right".
The Neo-Nazis of Mongolia is too strong word to describe the Mongolian nationalists. I don't know why some western journalists love to describe the mongolian nationalists as "Neo-Nazis".
Yes, we have several Mongolian nationalist movements. Dayar -Mongol means "All-Mongolia" and its leaders are Purevsuren, Bayarmandakh and not Zagas Erdenebileg-fifty-year old gentleman interviewed by Mitch. Dayar Mongoli is an NGO and governed by board members. Erdenebileg was a board member of the NGO before and by collective decision, was removed from the board.
Current Mongolian nationalist movements have less in common with National Socialism of Hitler's Germany and therefore can not be sharing same policy as claimed by Erdenebileg Zagas! .
Mongolian natonalism is not a new phenomena! For centuries, Mongolian nationalists led historic fights for survival, independence of Mongolian nation!
"Dayar-Mongol" or "All Mongolia" nationalist ideas were originated during 16th century when Mongolia was divided into Khalkh Mongolia, Inner Mongolia and Zungarian Mongolia (Western Mongolia) and internecine wars were waging between various Mongolian tribes. Many progressive princes and tribal chiefs were pushing for "All-Mongolia" idea to unite warring Mongolian states and tribes. The message behind the "All-Mongolia" idea is "we are one nation,sharing same language, culture" and therefore, should not be fighting against each other in the face of growing threat of Ching Dynasty of Manchus". Eventually, Manchus invaded whole Mongolia by successful implementation of "Divide and Conquer" policy.
Mongolia was liberated from White Russian Guards and Chinese nationalist troops in 1921 by Mongolians who had strong nationalistic sense and pride. Later, they were labelled as "Mongolian revolutionaries-communists" by Soviet and Mongolian communist historians. There is no doubt that Sukhbaatar Damdin, Danzan Nyamaa, first leaders of the national liberation movement was nationalists. Even now, Mongolians are living in People's Republic of China, Russian Federation and the "Dayar-Mongolia" concept still tells us "we are one nation" even we are living in different countries.

De Wang (Demchigdonrov), Inner Mongolian independence movement leader during 1930s and 1940s was a Mongolian nationalist leader. Democratic movement that shook the communist regime in Mongolia in early 1990s were led by Mongolians who wanted prosperity of independent Mongolian nation and development of traditional Mongolia culture and heritage.

As Mongolia has opened up recently and being a homogenous nation, it is easy to spot foreigners in Mongolia be them Koreans and Chinese or Russians, Americans. Every drunken fight and brawl between local Mongols and expatriates can not be interpreted as the nationalists threatening foreigners and sending message" get out". Much of the kids and teenagers wearing black glasses and shaved heads and leather jackets can not be described as "Mongolian Neo-Nazis".

Who else wears leather jackets and black glasses? Bikers... On July 11th, Mongolian bikers drove through town in celebration of Naadam holding Mongolian flags. They are not Neo-Nazis and have nothing to do with racial discrimination policy of Nazi Germany.
Some of the photos of the Mongolian bikers are attached here. Let me tell you again, they are not Mongolian Neo-Nazis. They are bikers.. Simple is that.

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From the Mongolian Press:Interview with the MPRP Lawmaker on Oyu Tolgoi Investment Agreement

“Unen” newspaper of MPRP (Mongolian People’s Revolutionary Party). Dated July 23, 2009. Interview with Davaasuren Tserenpil, MPRP lawmaker.
- The Khural transferred the right to execute agreement on Oyu Tolgoi deposit within existing legal framework to Government of Mongolia. During the parliamentary hearing you supported the resolution to authorize the Government making deal with the investors. Could you talk about significance of the resolution?
- Passing the resolution is a right step. It is because the draft Oyu Tolgoi Investment agreement submitted by the Government was inadequate. For instance, tax incentive issues. According to the draft agreement, total of $ 17 billion US Windfall Profits Taxes were to be exempted when the companies produce 20 million tons of ore annually. If the production starts after 2020 or when annual production is 50 million tons , amount of this type of tax exemptions would reach to $ 40 billion US. This $ 40 billion US tax exemptions are more than $ 19 billion US profit Mongolia to get from the mining! Therefore, first, this caused a lot of hesitation. Second, according to feasibility studies, resource rent payment of the company is $ 13 million US annually. However, management and administrative costs of the company is $ 33 million US annually. It is very illogical to think that the company will pay less for using resources than its management and administrative costs! The resolution was passed because of such mistakes and insufficiencies and for the benefit of all citizens of Mongolia. Actually, Mongolian citizens, media and public are saying long ago that Mongolia’s stake of Oyu Tolgoi should be 50 %. This is reflected in the resolution. Tax exemptions and buying back 34% stake is problematic. If the investors are exempted from certain taxes, this should be appropriated to Mongolia’s stake ownership of the deposit. For instance, 2 billion out of $ 17 billion US tax exemptions for 20 million tons of ore can be appropriated for Mongolian 34% stake ownership of the deposit. Based on the above, we considered the draft investment agreement was not done in a way to benefit Mongolia. If this large scale investment project is done incorrectly, all other large mining projects might follow the suit.

- On the other hand, there is concern that because of the directives outlined in the resolution, the negotiation might be delayed ! What kind of right does the Government have now due to this resolution?
- We have given the right to conclude an agreement within certain framework. The minerals law (article 29.1.1) defines the framework of the agreement. According to the law, there should not any tax exemptions. The law stipulates about creating stable tax environment only. Stable tax environment means any future tax changes will not be applied to the investor companies. The re-negotiation should be done within this framework. In previous agreement, the investors had tax exemptions which went beyond the law and ignored directives given by the Khural.
- They say that if this draft investment agreement is approved, the investors will not negotiate further?
- Why some Mongolians have to worry that the negotiation will be delayed and the company will leave Mongolia? There are many other mining companies in the world besides Rio Tinto. There are many countries which can invest large funds to Mongolian mining projects. Why we can not deal with Europe, Japan and Korea. We don’t have to look at Rio Tinto as the only investor in Mongolian mining project. I have no doubt that Rio Tinto will not leave Mongolia. Why? Because they have invested significant amount of fund in the deposit. The working group of the Government of Mongolia should not act as Representatives of the investors in the Khural. They should concern themselves only how to negotiate successfully.
- Government of Mongolia is emphasizing that Mongolia’s profit from the Oyu Tolgoi project will be 55-77% of the mining profits. Is this figure not good enough?
-3000 jobs to be created at the Oyu Tolgoi site is insignificant compared to the size of the project. There are other issues such as infrastructure and development surrounding the Oyu Tolgoi project. From the feasibility study, one can not see such figures and profit percentages. Therefore, we doubt these figures. Government of Mongolia is not introducing the relevant feasibility studies and researches to the public well enough. If this agreement was really beneficial for Mongolia, this needs to be shown and introduced. Talk is one thing and cold calculation of profit is another thing. However, calculation of profits can be done in any method. Therefore, feasibility studies prepared by professional, highly qualified experts and researchers should be open to anybody. The company is not giving full, comprehensive feasibility study. How come resource rent payment is less than management and administrative cost! We, Mongolians are the masters of the resource and how come we receive less profit than the cost of the company? According to cases of other countries, royalty payment is more than 20%.
-Can not Mongolia set royalty payment through law as we have legalized Mongolia’s ownership stake at 34%?
- Well, current minerals law is a law that needs to be revised. However, some of the provisions of the law do not need revision for another 30 years. I have submitted draft law to revise the minerals law along with other lawmakers. Through revision of the law, “30 year duration of large investment agreement” can be changed to “up to 30 year period.” Also in the current minerals law, holder of production license shall be owner of deposit. I’m in a position that resource rent or royalty payments should be set differently according to mining deposit size and type of resource.
- The 68% windfall profits tax law is very much criticized by the mining investors. Do you agree that this law needs to be applied flexibly?
- I have said before that the minerals law have no articles about tax exemptions. It is not true that only Mongolia have windfall profits tax. For instance, Chile, one of largest supplier of copper sets certain price of copper and any profit above that price level is concentrated in stabilization fund of the state. If mining profits to be shared with public, 68% windfall profits tax law should be there. If no windfall profits tax, royalty payment should be set higher. Some people confuse royalty payments as windfall profits tax.
- What do you say about the recently passed law on that giving VAT rebates to mining companies!
- No need to give the tax rebates. Mining companies take back huge amount of money. Tax rebates of “Golden East-Mongolia” and “ Centerra Gold” companies amount to billions of Tugrig.
- The Khural is now in recess. What do you think about accomplishments of the Parliamentary session?
- The session of the Khural debated some important laws and legislations. Personally, I think the parliament worked well. I would name law on beer advertising as bad law passed by the Khural.

Interviewed by B.Nomin

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Meaning of name "Mongolia"

There are many speculation about origin of name "Mongol" or "Mongolia".
One possible explanation of "Mongol" is "Munkh-Gal" or "Eternal Fire". Here Munkh in Mongolian means "Eternal" and "Gal" mean " Fire".
In old Mongolian script, Mongol is spelled "Monggol". Last part of the word or "Gol" means "River" in Mongolian. Therefore, Mongol may mean " Mon River".
There are many other explanations for beautiful name of "Mongolia".


Wikipedia guesses "Mongol" means "Brave" or "Fearless". In English and Russian, "Mongol" changed into Mongolia or Монголия.

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Mongolia Flood Pictures-Courtesy of International Federation of Red Cross and Red Crescent Societies and Mongolian news site www.gogo.mn

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Parliamentary committee briefing: So far Mongolian government did not apply for a single commercial loan

Enkhbold Zandaakhuu (MDP), Chairman of the Parliamentary standing committee on Security and Foreign Relationship and members of the committee, Ganbyamba Navaasamdan (MPRP), Narankhuu Khalzkhuu (MPRP), held a press conference in Government house yesterday afternoon.


Mr.Enkhbold, lawmaker from the Mongolian Democratic Party briefed the Mongolian
Press about the work of the committee. The committee's investigation on implementation of the "Stability Agreement" signed between Government of Mongolia and Canadian "Centerra Gold Inc" is ongoing, according to Enkhbold and so far Mongolia have not received single commercial loans from abroad.
Mongolia receives "development" or "soft" loans only from donors and other countries. The committee supports the government's policy to get only development loans with long term and with low interest rates (about 0.5%).During the 2009 spring parliamentary season, Mongolia received five development loans from abroad.
Four were from international donors such as World Bank, ADB, IMF and one was from Japanese Government, traditional ally of Mongolia. Russian Government offered $ 300 US commercial loan for Mongolian banks and wanted the Mongolian Government to act as guarantor of the loan. However, the Khural refused to act as guarantor of the loan and it is up to commercial banks of Mongolia to get the loan from the Russian Agricultural Bank.

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Pictures of famous Korean actors in Mongolia

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Korean Entertainers in Mongolia

Korean culture wave is sweeping over urban Mongolia as Korean movies and melodramas and music is getting popular among Mongolians.
Korean actress Jang Seo Hee who played Goo Eung Jee in TV drama “ Wife’s temptation” and actor Ahn Jae Mo who played Kim Doo Han in TV drama “ Rustic Period” arrived in Mongolia and performed in show center “ UB Palace”.


Melodrama “Wife’s temptation” was broadcast on Ulaanbaatar Broadcasting System (UBS), a local TV station during first half of 2009 and was one of highest rated TV drama in Mongolia.
The visit of the Korean entertainers was organized by Korean invested company “ BBQ” which runs a TV shop and restaurants in Mongolia.

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Mongolian Hairdressing blog

Tuya is a hairdresser who owns and runs hairdressing salon " Tuyarakh" in Ulaanbaatar, Mongolia. What is unique about her is, she keeps a blog about hairdressing in Mongolian. I don't know many other Mongolian hairdressers who writes blogs.
In her blog, you can find pictures about Mongolian hairdressing world and Mongolian celebraties like singer Saraa who is a regular customer at the salon. Check out her blog http://tuyarakh.blogspot.com

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UN Chief Ban Ki Moon to visit Mongolia

According to AFP and Press and Information Service of the Mongolian Ministry of Foreign Affairs and Trade, UN Chief Ban Ki Moon to visit Mongolia between 26-28 July. the UN chief is to meet with President Elbegdorj Tsakhia, Prime Minister Bayar Sanj and Foreign Minister Sukhbaatar Batbold during his vsit to Mongolia, according to UN sources. Also his wife Yoo Soon Taek to accompany him during the trip

As with every other international dignitaries visiting Mongolia, Mr.Ban Ki Moon will experience nomadic life by visiting a specially prepared herder family outside of UB. UN organizations runs various projects in Mongolia ranging from poverty reduction to business development and environmental protection.Probably, he will be given a gift horse in countryside. Hailing from Korea which share similar DNA and origin as Mongolia, this visit might contribute towards strenghtening Korea-Mongolia and UN-Mongolia relationship and cooperation.

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Mongolian Parliament or State Great Khural took recess starting today and Oyu Tolgoi deal

Mongolian Parliament or State Great Khural took recess starting today until the fall. Last week, the Khural authorized the Government of Mongolia to enter and sign re-negotiation on Oyu Tolgoi, gold and copper resource in South Govi region of Mongolia. Bipartisan lawmakers were very critical of the draft Investment Agreement submitted by the Government. However, it fell short of directly rejecting the investment agreement.


Now, Government can do re-negotiate with international miners without Khural ratifying the deal. However, Goverment has to re-negotiate within framework of existing tax laws of Mongolia including infamous 68% windfall profits tax law.
Khural rejected draft laws to revise tax laws submitted by the Government.
Right now, I don't want to be in the shoe of Zorigt Dashdorj, the minerals minister who is heading the working group to re-negotiate with the miners. He said " basically, we have to re-negotiate everything with the miners. We are not sure if Rio will be involved in the Oyu Tolgoi." Poor guy, put in a very difficult position.

This week, it should be clear if Rio will be still involved in the Oyu Tolgoi project as the miners and our Government sits down for another round of negotiation. No one knows if this be will be the final negotiation of Oyu Tolgoi saga which has been continuing since 2005.

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Mongolia hit by flood;21 people died

21 people died because of flooding, said Amgalanbaatar, Head of the Emergency Management Authority of Mongolia this evening.
Heavy downpour today (July 17) throughout Mongolia caused flooding. Hardest hit regions are remote western provinces of Mongolia and capital Ulaanbaatar. In remote western province of Govi-Altai 15 people died.

3 people died in Ulaanbaatar, capital of Mongolia. Emergency groups rescued 7 people from drowning in Ulaanbaatar. Emergency cabinet meeting of Mongolian Government held to assess the damage and organize rescue efforts and deliver supplies and provisions to flood-hit areas.
Some areas and districts in Ulaanbaatar are trapped by flood. Especially sprawling Ger districts in Ulaanbaatar are hit hard.

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Government of Mongolia to re-negotiate Oyu Tolgoi Investment Agreement

Many lawmakers recognized complexity of Oyu Tolgoi investment aggreement and decided to transfer the right to enter the investment agreement to Government of Mongolia. Parliament rejected revision of any tax laws that might give tax incentives or stablize tax environment of the Investment Agreement.
Previous version of the Investment Agreement had 30% Resource Rent Payment to substitute 68% Windfall Profits Tax law.



Parliament discussion is still continuing.....

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Mongolian Parliament passes a resolution authorizing Government of Mongolia to re-negotiate Oyu Tolgoi investment agreement

Mongolian parliament or State Great Khural was unable to come up with approval of the long awaited Oyu Tolgoi investment agreement today.


Instead it passed a resolution authorizing Government of Mongolia to enter Investment Agreement. Also parliament agreed to not give any tax stabilization to the investment agreement and recommended "all taxation" including 68% Windfall Profits Tax law should be applied to the Investment Agreement.

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After Naadam-musings

Every year, it happens.... This year also no exception from this. According to Mongolian news website www.sonin.mn


17 race horses died and 28 jockey kids received injures of various degrees. One of the jockeys is in critical condition. Mongolian horse race is one of most dangerous horses as jockeys and horse trainers use less safety appliances such as helmets etc.

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Genuine Mongolian Barbeque-Pictures

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Genuine Mongolian Barbeque-Pictures

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Naadam-Mongolian National Holiday

I was away from UB during Naadam holiday as Ulaanbaatar gets very crowded and hot.
It is most worthwhile to see and experience Naadam in rural areas rather than in UB. Naadam in UB draws many tourists and has become very commercial and crowded event.
Therefore, if there is opportunity to avoid UB, I do so.
Many families throughout Mongolia slaughter a sheep and make "Khorkhog" or Mongolian barbeque. It is completely different than the so-called Mongolian barbeque.

My english don't allow me to explain the Mongolian barbeque fully. I have attached couple of pictures to present the genuine Mongolian barbeque.

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'Man in Mongolia' quits

American Peace Corps volunteer in Mongolia, Brett Campbell who wrote about his experiences in Mongolia for Chronicle Times newspaper of Cherokee, Iowa, USA quits Peace Corps halfway. According to Chronice Times, Brett is saying goodbye to Mongolia due to health reason. He cites " loss of weight by more than 20 pounds, stomach, throat and sinus irritations and infections " which overwhelmed him.His writings were fun and hillarious.As a foreigner, he was able to observe things that we, Mongols don't observe.
Check out http://www.chronicletimes.com/story/1553315.html for the story.

Best wishes to you Brett. I hope that Mongolia will be in your thoughts...

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Happy Naadam !!!

On July 11, 12,13, we will celebrate Naadam festival.It is a traditional Mongolian festival of archery,wrestling, horse racing... Wrestling will be held in the central stadium and archery will be held outside the central stadium in its designated area.
Horse racing will be held in a place called Hui Doloon Hudag (Seven Wells) about 40 km away from UB.
On 4th day of the holiday (14th), festival of horse trainers will be held. It is a bit relaxed version of the Naadam for horse trainers who were busy on previous days racing their horses... Our Mongolians enjoy Naadam enourmously. Origin of this holiday is very old, dating back to the times of Chinggis Khaan. Selection of July 11 is a recent thing. Supposedly on this day, Mongolian People's Troops (pro-communist forces) liberated then called Da Khuree also known as Urga or present day Ulaanbaatar in 1921 from White Guard Russians.

Naadam means Game in Mongolian. Mongolian communities from all over the world celebrate this holiday wherever they are. Howevever, I'm not sure if other ethnic Mongolians in Inner Mongolia and Russia celebrate Naadam. If anybodyy from Buriatia and Kalmykia and Inner Mongoila visiting this blog, would you let me know about it??
Tomorrow will be half working day.... I'll try to post during Naadam holiday.

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Part of a transcription of today's parliamentary hearing on Oyu Tolgoi Investment Agreement

Bayarsaikhan, head of the Economic standing Committee of the Parliament (Democratic party-Umnugovi):
"Our committee has formed working group headed by Zandanshatar, the lawmaker and proposed to Government of Mongolia certain changes in the Oyu Tolgoi investment agreement.The working group proposed several appproaches to Government of Mongolia on negotiation with the investor.
The proposals included: ownership of golden shares, concession, through evaluation of the Oyu Tolgoi resources, Mongolia to own 34% and 50% stakes etc.
There are 2 versions of the Oyu Tolgoi investment agreement. 1st was 34% equity ownership and 2nd was Mongolia was to get all taxes without equity ownership.MPRP and Democratic Party groups agreed to take 34% equity ownerships."
Enkhbold Zandaakhuu (Democratic party-Uvurkhangai):
"What country other than Mongolia buys back its own resources and the provides tax incentives? It is very illogical....What if we gets sued for discriminating international investors.... We just should not be revising our tax laws because of a canadian company!!! We are doing too much for one company. I'm against passing this investment agreement as it is. I'm against this adventurism! Let's return this investment agreement for improvement??? What is wrong with that! It took 17 years for Russia to get conclude agreement on a deposit similar to Oyu Tolgoi!
Let's look around. Russians are far more wise than us.

Bayarsaikhan: This investment agreement negotiated according to Mongolian laws. We agreed in the Minerals law that state participation in state funded deposits shall be 51% and 34% in private funded deposits.We are not favoring this company. Everything is according to our laws and regulations.

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Lawmakers view on revised OT investment agreement is very critical

As of now ( 6 pm ub time), parliamentary discussion is continuing. Many lawmakers are expressing opinions critical of the current Oyu Tolgoi Agreement.
Saikhanbileg Chimed, Democratic party parliamentary group leader asked the lawmakers critical of the agreement " if we chase away Rio Tinto from Mongolia, with whom we are going to deal next??? Chinese and Russian companies which follow their countries geopolitical policies!!!! About 100 years ago, Russia and China used to decide Mongolia's fate."
Ms.Arvin, MPRP (Mongolian People's Revolutionary party) lawmaker said " I don't believe this agreement is going to benefit Mongolian people. This agreement is forced upon us by foreigners."
Gundalai Lamjav, Democratic lawmaker " If this article 5.5 of the minerals law is becoming obstacle for Mongolia to own more shares of Oyu Tolgoi, let's revise that article." Article no.5.5 of the Mongolian Minerals law says Mongolian state to get up to 34% of equity stakes of deposits discovered by private funds."


39 lawmakers voted to discuss the Oyu Tolgoi agreement in the parliament and 13 voted nay...
I'll try to put transcription of the session later today...

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Is Mongolian Buddhism different than Tibetan Buddhism?

Many people know about Tibetan Dalai Lama. However, many don’t know that Dalai is a Mongolian word meaning ‘ocean’. Lama is a Buddhist monk and teacher.
In 1578, Mongolian leader Altan Khan bestowed the title “Dalai Lama” on Sonam Gyatso, Tibetan Buddhist teacher.
The 4th Dalai Lama Yonten Gyatso was Mongolian, the only non-Tibetan ever to hold the office of Dalai Lama.
Both Yellow and Red Hat practices of Buddhism are practiced in Mongolia. However, Yellow Hat is the dominant practice throughout Mongolia.



Is Mongolian Buddhism different than Tibetan Buddhism?
Mongolian Buddhism uses same scriptures as Tibetan Buddhism and Tibetan is "the language" of the temples and monasteries in Mongolia.
Some of the scriptures are translated into Mongolian but such scriptures are few.

However, Mongolian Buddhism combined elements of Shamanism which was dominant among Mongolians before arrival of Buddhism from Tibet.

I wonder if anyone thought if Mongolian Buddhism can be classified as distinct form of Buddhism like Zen Buddhism ? Let's discuss it.

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Sukhbaatar's Revenge-What???

Mongolia book review:
“Mongolia, Empire of the Steppes” travel guide book by Claire Sermier and published by Odyssey Guides in 2002 is a colorful books with many nice photos and illustrations.
I got hold of this book recently in 2009 and reading it now. Just came across an unknown disease named after our national hero Sukhbaatar in this book.
In page 29, under title “ Health and Safety”- The average Mongolian lives a long, robust life; often attributed to the dry climate and hearty diet. Similarly, travelers are unlikely to catch anything other than the classic case of ‘Sukhbaatar’s Revenge’, which is due to a change in eating habits and way of life.

We don’t have a disease called ‘Sukhbaatar’s Revenge’. Maybe author of this guidebook imagined that Mongolia must have a disease named after its hero similar to Pharaoh’s revenge in Egypt.

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Heated discussion on Oyu Tolgoi deal is continuing in the Parliament

State Great Khural or Parliamentary hearing on Oyu Tolgoi agreement is being broadcast live on "Sansar" cable TV. Prime Minister Bayar Sanjaa and Minerals Minister Zorigt Dashdorj answering questions from the lawmakers......

At the same time, the civic movements " My Mongolia" and " Association of Free Elders" and " Radical Reform" are organizing public discussion on Oyu Tolgoi agreement in central square of Ulaanbaatar.

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Mongolian Parliament started hearing of the Oyu Tolgoi Investment Agreement

Today, Mongolian parliament started hearing of the Oyu Tolgoi Investment Agreement.
The Investment Agreement includes about 60 revisions after re-negotiating with Ivanhoe Mines.According to this agreement, Mongolian Government to own 34% equity stake and impose 30% Resource Rent Payment.
Will update about the hearing throughout the day....Keep tuned.

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Wild Horses in Mongolia

National Geographic TV produced a spot on Wild Horse Takhi also known as Przewalski horse.... The spot includes footages shot in Khustai National park where wild takhi horses are successfully reintroduced. They are magnificient animals. Freely roaming the area on their own. Nothing but wind on their back. Free and Wild....

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Mongolia and Xinjiang

Zungharian Mongolian state ruled Turkestan through Khojas, aristocratic families of the Uigurs.
Still many Mongolians or Torghuts live in Bortal region of the province.Some local names of East Turkestan still retains Mongolian root words.
After Mongolia became independent state in 1921, many Mongolians in Turkestan moved to Mongolia.... Bulgan soum of Khovd aimag consists of Mongolians from Turkestan...
I think what happened in Inner Mongolia is going to be repeated in Turkestan... Inner Mongolia is completely assimilated into Han Chinese culture and Mongolians became minority in their own land... Inner Mongolians does not have popular leader like Dalai Lama for Tibetans....
World community should listen to pleas of Uigurs and Inner Mongolians and push Beijing regime to change its policy towards ethnic minorities!!!!

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Xinjiang, traditional homeland of the Mongols ???

Eastern Turkestan or Xinjiang was an area occupied by Western Mongols (Zunghars) in 16th century. Zhunghar was a large, independent Mongolian empire which stretched from Lake Balkhash in the north down to Kashgar, Hami and Barkol.
Zunghars was defeated by the cursed Manchus who founded Ching Dynasty in China.
Eastern Turkestan is a land we lost to China. Not only we lost Eastern Turkestan but lost Inner Mongolia forever to China because of this Manchu rule.

Mongols’ hatred for Manchu knows no bounds. Manchu is a cursed nation who handed Tibet, Inner Mongolia and Eastern Turkestan to Han China. If it was not Manchus, all these countries would have been separate and independent countries on their own.
Manchus got what they deserved. They are fully assimilated into Han Chinese culture.

Hey Manchus, Where is your pride and arrogance???? You enslaved Mongolia for 200 years until 1911. Now Mongolia is independent and free even we lost some of our land!!! Now no more traces of Manchus in the world!!

Where is your wise ancestors and emperors???? Didn’t they know that they will be assimilating in Han China!! They would be crawling in their graves if they know that their conquests made Han China large and ruler of other nations and brought nothing but suffering and enslavement for Mongolia, Eastern Turkestan and Tibetans!!!
You as a nation, Manchus are eternally damned…

You handed Tibet, Inner Mongolia, Turkestan to Han China!!!

My heart goes out to Uigurs who are struggling against the Beijing policy of forced assimilation of the Uigurs. They are fighting for right cause in Urumqi during last few days…
May all the oppressed non-Chinese minorities get heard by international community!!

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