Tsakhia Elbegdorj re-elected Mongolia's President

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Tsakhia Elbegdorj, current Mongolian President, has been re-elected for a second term after he was polled 50.23 % of the votes and thereby defeated main opponents Bat-Erdene Badmaanyambuu (a former wrestling champion) of the People's Party and health minister Udval Natsag of the People's Revolutionary Party (the first Mongolian woman to run for President office)

  • Elbegdorj served twice as Premier (PM) of Mongolia before becoming president in 2009
  • Tsakhia Elbegdorj and his Democratic Party favours a "free market economy" but has a Nationalistic approach when it comes to ownership of mines, country's main source of foreign investments
  • supports regulated and more controlled foreign mining investments with larger share of Government in these strategic assets
  • Mongolia peacefully ended 7 decades of communist rule in 1990 following a "Democratic Revolution"
  • Mongolia : landlocked country (between Russia and China)
  • Prime Minister : Norov Altankhuyag


Oyu Tolgoi mine (Gobi Desert, Mongolia) : (also known as "Turquoise Hill" or "OT" project)

  • Biggest foreign investment of Mongolia (project is worth 6.6 b$)
  • Ownership : Anglo-Australian miner Rio Tinto's Turquoise Hill Resources unit: 66 % ; Government of Mongolia : 34% (an amendment in April 2013 - Strategic Entities Foreign Investment Law, lifted many limits on the stakes foreign investors can own in sectors such as mining).
  • commercial production and export of copper-gold concentrate expected to start by July 2013
  • expected to boost Mongolia's economy by about a third by 2020 when it is forecasted to reach full production of 450,000 tonnes of copper and 330,000 ounces of gold a year
  • already it has helped double-digit GDP growth rates of Mongolia in 2011 and 2012 (one of the highest in world)
  • predicted to operate for at least 50 years and would likely account for 3 % of global copper production

CONCERNS/ DISPUTES :

  • minor disputes with the Mongolian government over royalties, costs, management fees and project financing
  • Dispute over revenue generated by Rio Tinto : some nationalistic forces within government wants revenue earned to remain in Mongolia (no repatriation) despite the agreement which gives Rio Tinto the freedom to put the export revenue anywhere it wants.
  • Long time impact on environment (Undai River flows nearby), water level, indigenous communities
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