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Mongolia is capping foreign investment in certain industries, including mining, in an attempt to keep profits inside the mineral-rich nation’s borders.
Wall Street Journal (sub required) reports that Mongolia’s parliament has approved a new law that caps future foreign participation in some sectors:
When it goes into effect, the law will require foreign investors to obtain government review and parliamentary approval for investments at 49% and above into industries such as resources, finance, telecommunications and media, according to analysts in Ulan Bator. The cap is specific to deals valued above about $75 million.
The legislation comes ahead of elections set for June.
Reuters reported earlier this month that the provisions were watered down, fearing a backlash by foreign investors in the mining sector – the foundation of the country’s economy.
Last year gross domestic product in the nation of fewer than 3 million people expanded by 17.3% and this year it should easily top 20% thanks to billions of dollars of foreign investment in the country’s coal, copper and gold mining industry.
Comments
Stanciu Nicolae
I want to buy a license for extraction polymetals