WE HAVE TO WORK HARD TO GET BACK OUR HONOR’ SAYS BAYAR

The MPRP plenum that yesterday nominated S.Bayar to continue as Prime Minister began with Bayar, in his capacity as the party chairman, presenting a report on recent events. On the July 1 incidents, he said these raised some fundamental questions that were not easy to answer. Some politicians were keen on misrepresenting the real situation to serve their own interests and to mislead society. The media had to be controlled, he said, as they had lent themselves to be used for partisan politician ends.

He said the events of a few days had destroyed the good name Mongolia had earned after 18 years of peaceful democracy. “We have to work hard to get back our honor,” he said, adding that the international community was carefully watching how Mongolia proceeded.

On the current economic situation, he said the growth in the last three years was the result of revenues from mining going up when international commodity prices were high. “Too much of politics did not allow us to fully utilize the economic opportunities made available to us.” 

He said the country stood at a historical crossroads, and Mongolians needed to show maturity and a sense of responsibility to make sure the country made the right choice of way.  “We have to decide whether we will develop or not. We have to adopt a foreign policy that furthers our national interests. Our attitude towards the development of mining has to be pragmatic. Big countries and rich investors are interested in our mines but our failure to make up our mind meant that in the last four years no large-scale new mining exploration was begun, nor did any big factory come up.”

EURASIA HEDGE FUND BETS ON MONGOLIA

Eurasia Capital Management plans to increase the world's first Mongolia-focused fund fivefold to $100 million to tap economic growth fueled by the nation's mining industry. Eurasia's hedge funds, which have about $200 million of investments across Central Asia, also expect to sell shares on London's Alternative Investment Market or Deutsche Boerse AG by next June, said Alisher Djumanov, managing partner of the Singapore-based firm. Proceeds would be used to start private-equity and property funds, and expand in Central Asia. Mining in Mongolia will spur “double-digit” economic growth rates over the next 10 years as commodity prices remain high, Djumanov said in an interview. Mining accounted for about two-thirds of Mongolia's exports last year, and foreign direct investment in the country rose more than 33 percent. “The spillover effect from the mining sector will be significant,” Djumanov said. “We're investing in companies that are expected to grow significantly on the back of this strong economic growth.”

Eurasia's Mongolia Discovery Fund rose 12 percent this year, compared with the 16 percent drop in the MSCI World Index. The fund invests in coal mines, water utilities as well as oil and gas companies. Eurasia Capital is not alone in seeking ventures in Mongolia. Almost 70 percent of investments there came from China, according to the Asian Development Bank. Frontier Investment & Development Partners, manager of a private-equity fund, plans to raise $100 million next year to invest in mining, infrastructure, real-estate and tourism projects in Mongolia, said Marvin Yeo, Frontier's Phnom Penh-based co-founder.