Mongolian Parliament considering draft mining law changes

Mongolia’s windfall profits tax cut-off on gold will be increased by $300/oz under draft resolutions submitted to the nation’s parliament.

RENO, NV - 

Mongolia's coalition government has agreed in principle to support draft resolutions drafted by Parliament's joint working group aimed at expediting mining law changes.

One resolution calls for 51% state ownership of the Tavan Tolgoi Coal Mine and 34% of the Oyu Tolgoi copper-gold deposit.

MP Kh. Badamsuren, head of the joint working group, told the UB Post, "Current minerals law indicates that state participation at the Oyu Tolgoi project shall be up to 34 percent. Working group members suggest that it should start at 34 percent and up."

Meanwhile the UB Post reported that Mongolia's Parliamentary Standing Committee on Budgets recently agreed to increase the price rate on windfall profits for gold. The proposed change in the current windfall profits tax law would increase the cut off price at which a windfall tax would be applied from US$500/oz to US$850/oz for gold.

The Mongolian Government estimates that the amount of gold purchased by the central bank would increase after the windfall tax on gold measure is enacted.

The government has already purchased the majority of Tavan Tolgoi from a partnership of Mongolian businessmen, but needs to establish a framework to attract larger coal companies to properly develop what may be the world's largest undeveloped coking coal deposit.

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back

 

responses to this article

Well Good for Mongolia by BBBB on December 01 2008, 02:55 Find this comment inappropriate? Report it

Name
Subject
Comment