OBG Event

04 Feb 2013

All eyes on foreign investment laws as country prepares to drive mineral growth.

Mongolia’s plans to attract investors who can help the country tap its vast quantities of mineral reserves are put under scrutiny in a new report produced by the global publishing, research and consultancy firm Oxford Business Group (OBG).

The Report: Mongolia 2013 shines the spotlight on the country’s foreign investment laws, which have been the subject of much debate at the political level, but will also prove pivotal in luring international players to participate in key areas such as infrastructure, capital and expertise. It is produced with research assistance from The Business Council of Mongolia, Ernst & Young, Clyde & Co and MICC.

The publication mulls the challenges the country faces in its endeavours to ride the commodities boom while trying to retain age-old traditions. Detailed analysis of the efforts to resolve issues at the country’s two largest mines, Oyu Tolgoi and Tavan Tolgoi, is included, which will be of key interest to prospective investors, together with in-depth coverage of changes to the country’s legal, environmental and tax regimes.

The Report: Mongolia 2013 explores the government’s plans to drive through legislative reforms which will pave the way for new public-private partnerships in electricity generation. The country’s bid to revive manufacturing through domestic processing is also given wide-ranging coverage.

Regional Editor Paulius Kuncinas said that Mongolia’s exports of coal, copper and iron should rise on the back of a favourable global outlook for commodities. “This should help stabilise government finances, whilst increasing foreign reserves and also play a part in improving fragile investment confidence,” he said. “The most significant milestone in 2013 remains the launch of commercial production at Rio’s copper mine, set to become the second largest in the world.”

OBG’s Editor-in-Chief Andrew Jeffreys added that while inflation remained the greatest challenge for policy makers, Mongolia’s GDP dynamics were expected to lure new foreign direct investment (FDI) capital in 2013. “Downside risks remain linked to politics as the government continues to try and balance the need for investment with protecting its own domestic interests,” he said. “We expect 2013 to be a pivotal time for investors, which will clearly define Mongolia’s position on global risk perception for some years to come.”

The Report: Mongolia 2013 contains interviews with the President of Mongolia Ts. Elbegdorj, Prime Minister N. Altankhuyag, US Secretary of State Hillary Clinton and Australia’s Foreign Affairs Minister Bob Carr, together with a detailed, sector-by-sector guide for investors.

Marking the culmination of more than six months of field research by a team of analysts from OBG, the report assesses trends and developments across the economy, including macroeconomics, infrastructure, banking and other sectoral developments. The report, which was Mongolia’s official publication at the World Economic Forum in Davos, has been produced in partnership with the Business Council of Mongolia, Ernst & Young, Clyde & Co. law firm and the Mongolia International Capital Corporation (MICC). It is available in print or online.