Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
MONGOLIA is OPEN for BUSINESS 1 MONGOLIA is OPEN for BUSINESS Content • • • • • History of mining sector in Mongolia Assessment of the current situation Business opportunities State policy of the mineral sector Conclusion 2 MONGOLIA is OPEN for BUSINESS Mongolian mining industry has history of 101 years 1990- 1923 - 1990 1913 - 1921 Large-scale state-run mining and infrastructure projects Free marketoriented legal environment and favorable investment environment 3 MONGOLIA is OPEN for BUSINESS Mongolia is one of the fastest growing economies 16 14 17% GDP, billion USD 12 15% 10 GDP growth by percent 12.9% 12.4% 13% 11.7% 8 11% 6 9% 4 6.4% 2 0 7% 3.9 3.9 3.5 6.9 8.8 10.6 11.7 14.7 2007 2008 2009 2010 2011 2012 2013 2014 5% Ministry of Finance forecasts Mongolia to continue enjoying double digit growth in the coming years. GDP growth by percent GDP, billion USD 19% 17.5% MONGOLIA is OPEN for BUSINESS Economic development and mining sector CONTRIBUTION OF THE MINING SECTOR (%) Export GDP 17% Budget 81% FDI 23% 73% % 20 21 17 89 91 2011 2012 2013 2011 2012 81 2013 20 21 23 78 81 2011 2012 2013 2011 2012 73 2013 5 MONGOLIA is OPEN for BUSINESS Production, billion MNT Investment, million USD Investment and production The production of the mining industry is rapidly growing in the last years due to the investment. Therefore, the Ministry of Mining supports a policy to promote and encourage investors. 6 MONGOLIA is OPEN for BUSINESS OPPORTUNITIES: Why invest in Mongolia? (1) 1950 deposits and 8150 discoveries are registered in the State inventory of mineral resources, and 300 of them are under utilization. Main Minerals U Resources (2013) Gold (tons) 2,493 Zinc (thousand tons) 1,740 Iron ore (mln tons) 1,166 Crude oil (mln barrel) 2,438 World Rank Top 10 Copper (thousand tons) 117,000 Top 10 Coal (mln tons) 175,500 Top 10 Shale oil (bln tons) 788 Uranium (ths tons) 170 The Central and Eastern parts of Mongolia relatively well studied. While western part of country is untapped, which has a great potential for discovery of new deposits. MONGOLIA is OPEN for BUSINESS OPPORTUNITIES: Why invest in Mongolia? (2) RUSSIA GDP $2.118 Trillion Economy 8th Largest Population 143.500.000 KOREA CHINA GDP Economy Population $8.939 Trillion 2nd Largest 1.344.130.000 GDP $1.198 Trillion Economy 15th Largest Population 50.129.669 JAPAN GDP $5.007 Trillion Economy 3rd Largest Population 126.659.683 Source: World Bank, 2013 8 MONGOLIA is OPEN for BUSINESS OPPORTUNITIES: Why invest in Mongolia? (3) Coal to Gas $30.0 bln Iron Ore processing $1.0 bln Railways $16.0 bln Coal to Liquids $2.5 bln Copper Smelter $2.0 bln Oil production $0.8 bln Coal washing $0.8 bln Power plant on Tavantolgoi coal mine $ 1.0 Bln Highways $0.46 bln Oil refinery $1.20 bln Power plant V $1.2 bln Total investment: $ 56.96 Billion 9 MONGOLIA is OPEN for BUSINESS Legal reform: State Policy on the Mineral sector (2014/01/16) Investment law (2013/10/03) • Improve the competitiveness and development of the mining sector, encourage the transparent and responsible mining industry based on private sectors. • • Provide sustainable investment environments (stabilize the investment) Non- discrimination between foreign and domestic investors. Amendment in Minerals law (1) (2014/01/24) Law of Mongolian on common – occurrence mineral resource (2014/01/09) Law on border ports (2013/12/26) Petroleum Law (2014/07/01) Regulation for long named law * Royalty fee is 2.5%, when gold sells to the Central Bank or commercial banks. Current royalty rate will apply when export the Gold. • The rights of an issuance of the special license transferred to the province and local authority; The area will be allocated without competitive tender; Royalty rate is 2.5%. • • Law of Mongolia on exemptions from custom and VAT taxes,(2013/06/07) Amendment in Minerals law (2) (2014/07/01) • • • No VAT and customs until 2018 for the equipment of oil, shale and coal processing projects. • • Improved border point management Better port regulation allows to accelerate trade and reduce bureaucracy • Main principles are not to restrict the investors’ right and basic principles of the Law dated on 2006. • Intensify the explorations of shale oil and crude oil. • Activities of special licenses, which issued before the law, shall be continued under the contract. * Prohibit mineral exploration and mining operations at headwaters of rivers, protected zones of water reservoirs 10 MONGOLIA is OPEN for BUSINESS CONCLUSION 1. Democratic country with open market economy. 2. Stable political environment. 3. Great potential of minerals. 4. Neighboring with two giant markets. 5. Created a long-term, easy to understand and stable legal environment in the mining sector. 6. Favorable tax environment. 11 MONGOLIA is OPEN for BUSINESS We are warmly welcoming you to MONGOLIA