G.Zandanshatar: The law does not apply to its activities without the private sector and investors' proposals

Published: 2018-03-23

G.Zandanshatar: The law does not apply to its activities without the private sector and investors' proposals

For the first time, the Mongolia Mining-Mining 2018 Investment Forum is being organized for the purpose of introduce investment environment of Mongolia, current state of mineral sector, policies, projects and programs and to attract investment. Mr. Zandanshatar, Chairman of the Board of Ministers of Mongolia, Chief of Cabinet Secretariat, and Investors' Protection Committee, spoke to the investors. 

-"Mongolia is coming to the spring of the economy. Governance improved, accountability and economic growth. For the first two months of this year, the fiscal balance was the first profit in the last seven years, "he emphasized. The Government of Mongolia is working to create a conducive and stable business environment. The package of tax reforms, economic reforms, major programs and projects will be presented during the "Public-Private Partnership Spring Forum" Economic Forum held on 28th of March. The Government has adopted a three pillar of economic development policy, the "Multi-pillar Economic Development Policy", "Integrity, Responsiveness, Responsible Sustainable Governance" and "Man-Centered Social Policy" will be presented.

-Foreign direct investment rose 2.5 times in 2017, with investment amounting to $ 1 billion 500 million, which is a rebound in investor confidence. Growth in your mineral and mining sector is heavily weighted. Therefore, the Cabinet Secretariat Chairman G. Zandanshatar emphasized that the investment climate should be sustainable and that the Government's priority policies and targets should be prioritized.

Mining industry alone makes up 90 percent of export products, 77 percent of industrial products, 22 percent of GDP and 25 percent of budget revenue. Therefore, the Ministry is focusing attention on projects targeted at fostering economic growth, producing value-added products and increasing jobs through encouraging investments. By doing so, we adhere to principles of consolidating partnership between government and private sector and cooperating openly with entities and investors to fulfil these objectives, Minister of Mining and Heavy Industry D.Sumiyabazar said.

During the forum, head of the Heavy Industry Policy Department of the Ministry, D.Davaadorj presented projects to be implemented in the heavy industry field. Government of Mongolia resolved to establish oil refinery in Altanshiree soum, Dornogobi aimag and copper smelter at Oyu Tolgoi mine. Moreover, the Government plans to construct coal-to-gas plant at Baganuur mine in Bayandelger soum, Tuv province. According to feasibility studies of these projects, a total of USD 5.8 billion is required. 

Owing to the projects, GDP is envisioned to grow by 15 percent, over 30 types of related factories to be set up, USD 300 million is to be paid to the state and local budgets a year, import volume to fall by USD 1 billion and foreign trade profit to up, the Government and the Ministry estimate. Also, it will create over 2800 direct jobs and over 3000 indirect jobs.

The Government Media and Public Relations Department reports.

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