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Following are links to photos of hard copies of the unofficial translation of the text of the adopted law on regulation of foreign investment into enterprises of strategic significance (some wording changes expected for paragraphs in black) provided by Ministry of Foreign Affairs and Trade of Mongolia.
There is an opinion that implementation of the law in reality would be of critical importance as the law itself could have reasonable impact to foreign investment or could alternately significantly negatively impact foreign investment.
Southgobi (TSX: SGX, 1878 HK) /Winsway Coking Coal (1733 HK) / Aluminum Corporation of China Limited(2600 HK)
In an interview to leading Mongolian news portal news.mn on May 22,2012 (http://economy.news.mn/content/108518.shtml) Head of Fiscal Policy Department of Finance Ministry of Mongolia, Chairman of Board of Directors of Development Bank of Mongolia B.Batjargal clarified regarding how agreement between SouthGobi Sands and Chalco will be resolved
- In case of sale of controlling stake of SouthGobi Sands to Chalco permission is to be obtained from Government of Mongolia. Law instructs so.
- If stake is sold without permission of Government of Mongolia mineral license of SouthGobi will be confiscated. This applies not only to SouthGobi. All majority stakes in strategic enterprises for sale to foreign investors will have to get permission from Government
- 600 million USD raised from bonds of Development Bank is not spent on anything. Projects to finance have not been submitted. If Ministry of Roads and Transportation delivers rail project to us, we are ready to finance even today. Indeed issue of building railroad has not yet has been resolved
- Instead of keeping money without doing anything we will fund 50 billion MNT financing for 6% residential financing, in coming days we will give money to State Bank and Capitron banks. Soon citizens will start getting 6% loans.
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According to leading Mongolian news portal news.mn on May 22,2012 http://economy.news.mn/content/108552.shtml ) starting tomorrow, Wednesday, May 23,2012, 350 thousand MNT from 1 million MNT cash transfer will be started to be issued to senior and developmentally challenged citizens who have applied for it.