Permitting delays impact British Columbia projects valued at C$38 billion, AME says
British Columbia's exploration sector has over 60 critical mineral projects waiting for permits.
Mongolia’s parliament on Friday appointed Chimed Saikhanbileg as prime minister, more than two weeks after the ouster of his predecessor amid an economic crisis prompted in part by the stalled Oyu Tolgoi mine expansion.
After sporting eye-watering growth rates for years, foreign investment plummeted last year and is already down 59% for the first three quarters of 2014.
The massive copper-gold mine, 66% owned by a Rio Tinto subsidiary with the Mongolia government holding the rest, has the potential of adding 30% to the country’s gross domestic product, but the underground expansion has been in limbo for years due to disputes about funding.
Given the fact that Saikhanbileg had been a cabinet member for the past three year and therefore would’ve been involved in discussion about Oyu Tolgoi does not bode well for any real breakthrough.
Dale Choi, an independent Mongolian mining analyst, said the appointment of Saikhanbileg represented “business as usual” for the government, and could further drive away foreign investment.
“If Mongolia cannot get its house in order now then everyone will have to wait until 2016 (elections)… and only a few large foreign investors have the funding cushion to afford that,” Choi said in emailed comments.
The ruling party last week appeared to tap Amarjargal Renchinnyam as the the new prime minister, one of three candidates for PM together with Saikhanbileg, but the respected economist who is considered a pragmatist fell out during subsequent rounds.
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3 Comments
Bob Down
It is a shame that Mongolia is run by a corrupt bunch of people, there will be tears!
Everyone says that Mongolia is a mineral rich country, but there are only four hard rock mines and a bunch of sub-economic coal deposits! Fools!
Ikh
Having squandered the opportunities of the past decade, the country is now trying to start its mining industry at a time when the industry internationally battles just to stay afloat.
Mining support industries are fleeing Mongolia in droves while potential investors wisely turn elsewhere.
Unquenchable greed and unprecedented corruption killed the golden goose.
The best bet for Mongolia now is to sign the country over to the Chinese and become a “semi-autonomous region”, a state that seems best to suit the temperament of this anarchistic, backward nation.
MongoliaWatcher
The article has an obvious error. It should say “The ruling party last week appeared to tap Amarjargal Renchinnyam as the new prime minister,….”. Altankhuyag Norov is the former prime minister that just got ousted.