Mongolian Government Officials Acknowledged the Investors Need for a Stable and Transparent Legal Environment

Sydney, Aug 16, 2011 (ABN Newswire) - Mr. Dashdorj Zorigt, Minister of Mineral Resources and Energy, told the attendance at Mongolia Capital Raising and Investment Conference about the commitment made by Mongolia's government to foreign investors.He emphasized that officials were aware of the importance of stability and transparency from the investment community perspective. He notably precised that the 68% windfall profits tax was repealed at the beginning of the year as a demonstration of this understanding. The adoption of the New Fiscal Responsibility Law last year was also a sign of credibility sent to the local and international community about the nature of the government's intention in this respect. Further in line are the Concessions Law adopted in 2010 and the likely debate about a new integrated budget law that could help locking in prudent fiscal policies.Mr. Zorigt harked back to the temporary ban on the issuance of new mining exploration licenses decided by President Tsakhia Elbegdorj last April. Such a decision, which was instigated by numerous conflicts of interest present in the mining sector, has been extended by the Parliament until the end of the year. It is expected that by that time, the country will be equipped with an enhanced framework through the amendment of the Mineral Law.Finally, Mr. Zorigt further stressed the importance of mining and infrastructure in the country's economy. He underlined the need to develop the energy sector (installed capacity to be doubled from short- to mid-term) and even the possibility to export such energy at some point, notably to China. With respect to railway infrastructure, the government's strategy is to expand it nationwide so as to benefit from more bargaining power with its neighbors when negotiating exports prices.

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