Mongolian president calls for better environment for foreign investments

Mongolian President Tsakhia Elbegdorj says his country should respect the Oyu Tolgoi copper-gold deposit agreement reached between the government and foreign investors and create a better investment environment. Elbegdorj made the statement during a recent interview with state-run Mongolian National Public Television that went public on Wednesday. The president said Mongolia's reputation for having a favorable investment environment is being tarnished as domestic demand is growing for the government to hold more shares in the project backed by foreign companies. The Oyu Tolgoi agreement is a legal document signed by the government and foreign investors after years of negotiations and Mongolia should respect the agreement, he added. The Oyu Tolgoi mine has an estimated deposit of more than 31 million tons of copper, 1,328 tons of gold and about 7,000 tons of silver. Canadian mining giant Turquoise Hill holds 66 percent of the shares and the Mongolian government owns the remaining 34 percent under an agreement signed in October 2009. Elbegdorj expressed strong disapproval of a law on strategic investment adopted by the parliament in May, saying the measure has worsened Mongolia's financial climate by imposing strict review conditions on foreign investments.