According to leading Mongolian daily “Udriin Sonin” today, nine anti-OT IA, anti-Coalition Government MP-s that have demanded revision of OT IA, namely, N.Batbayar, Ts.Batbayar, S.Erdene, Z.Enkhbold, D.Gankhuyag, Ts.Davaasuren, B.Bat-Erdene, Ts.Shinebayar and D.Baldan have submitted to Secretary of Administrative Office of Parliament S.Magnaisuren yesterday a letter to have Prime Minister S.Batbold resign

  • According to the letter, “ We, following MP-s, are proposing to have PM resign based on related clauses of Constitution and Law on Parliament and following reasoning.  Although implementation of Parliament resolution on OT has been stressed and mentioned, there is not any specific progress in the implementation of the resolutions. This proves that Government has no interest and desire neither capacity to improve OT IA . This is further proven by response of the Government to demand of the MP-s and Joint Statement of the Government with Ivanhoe Mines and Rio Tinto.
  • Therefore, we view that PM has not implemented and therefore broken the clause of the Constitution that PM governs the Government and is responsible before Parliament. Furthermore, PM broke the law by making joint statement with Ivanhoe Mines and Rio Tinto without collegial decision made by the Government. We view this statement contrary to national interests of Mongolia, ignoring respect for state law, interfering with full rights of state power supreme organization. This immoral action of Prime Minister has mining issues and direct conflict of interests. There is a need to debate by Parliament session vote of confidence to him.”


Secretary of Administrative Office of Parliament S.Magnaisuren briefed the media

  • According to Constitution, if not less than one quarter of MP-s propose issue of having Government resign, then Parliament will discuss the issue
  • According to Law, it is impossible to have only Prime Minister resign


MP N. Batbayar, author of ill-fated WPT, also known in the industry as “Fortuna”, one of the leaders of 20 anti-OT IA, anti-Coalition Government MP-s and who actually submitted the letter briefed the media

  • There is legal environment that one MP can propose a to have Prime Minister, a Minister of the Government resign
  • Prime Minister broke a clause of the Constitution
  • There were problems in submission, no one wanted to accept the letter, what is going here, is there a state in Mongolia?
  • If Parliament cannot take measure on official that does not implement state’s decision then this Parliament should be dismissed
  • Mongolian land and soil must be full and whole, Mongolians must be masters of their own land and soil
  • Parliament instructed for 50% after initial investment is recouped, why Government is talking about 30 years
  • According to law, this issue must be discussed within a week by Standing Committee of Parliament


Frontier Securities conclusion:

  • MP N. Batbayar did come up to his promise of submission, much publicized attack of the anti-Coalition Government political forces on the Government is in full progress, it is very likely that this was part of the anti- Coalition Government plan from the beginning, this is intensification of fundamental political fight in the country between Coalition Government, leaderships and establishments of partner parties in the Coalition Government and  cross party anti-Coalition Government alliance
  • It is now clear who are the nine hardcore cross party anti-Coalition Government MP-s
  • However, the remaining 11 anti-OT IA MP-s have not joined for some reason this time, this letter is not likely to make it to the Parliament floor, Parliament standing committee is to decide on that next week
  • substantial  negative impact on global Mongolian equities seems to be unlikely at the moment
  • We strongly believe that Coalition Government has wide political support , The Prime Minister has political support and will not be forced to resign


For further inquiries please contact:

Chief Investment Strategist

Dale Choi

This email address is being protected from spambots. You need JavaScript enabled to view it.