www.metalbulletin.com October 02, 2013
Security of mining tenure in Mongolia, a transparent legal system and legislative reforms are among the key cornerstones which will promote investment sentiment and confidence in the country, Dale Choi at Independent Mongolian Metals & Mining Research said.
“While well overdue legislative change is a potential positive development, without flagship transactions and resolution of security of tenure uncertainties, we do not believe the foundation for a return towards private sector growth will be provided,” Choi said in a note to clients. As of August 2013, foreign direct investment in Mongolia has collapsed 47% year-on-year, foreign reserves have depleted at $175 million per month burn rate with exchange rate depreciating 18% year-on-year and foreign debt at 55% of Gross Domestic Product, he said. A number of key issues, including law on investment, were discussed at the emergency parliament session in September but nothing was approved. The next session starts on October 3. In such an…