By Frik Els
Concerns are mounting over draft legislation being considered by Mongolia’s parliament that would place severe restrictions on foreign ownership and greatly increase state control over mining and exploration companies.
The Asian country has enjoyed a resource investment led boom turning it into one of the fastest growing global economies. The sparsely populated country with some 3 million inhabitants grew at a 17% clip last year from 30% the year before.
But ardour for new mining projects in the country is already cooling and growth could return to the single digits.
The Business Council of Mongolia, a five-year old business advocacy group, sent a letter to Mongolian President Tsakhia Elbegdorj the architect of the bill earlier in January expressing grave concerns about the bill which in its current form is much more far-reaching than anticipated.