Cabinet submitted to State Great Khural the State Ownership of the Gatsuurt Deposit Resolution draft. Labelled as ''urgent“ the draft was received by the parliament two weeks ago and was waiting to be discussed.
The resolution draft provisioned the state ownership of 34 percent which is gaining attention from the party groups and coalitions seated at the parliament. The discussion of which was postponed at the initiation of the MPP group, but through their group meeting MPP members have agreed on discussing the draft by the parliament.
MPP GROUP leader D.Khayankhyarvaa stated that there are two main requirements in the scope of the draft discussion. First, state should own 34 percent for free and if it is not acceptable MPP proposes up to 6 percent on the special program to replace the 34 percent ownership, a 3 percent increase from the proposal submitted by the cabinet. Secondly, state is required to do beneficial agreements in regards with deposit developments.
DP GROUP on the other hand haven't discussed the draft of Gatsuurt deposit through their meeting. Sh. Tuvdendorj, Deputy Leader of the DP group, stated that the group is still on their stance to proceed with their initial suggestion that during the economic downturn cabinet's suggestion is the best solution.
“JUSTICE COALITION“ leader N.Battsereg expressed their stances as the state should own the portion of the strategic deposits.
Labelled as "urgent" this draft is okayed by the party groups and coalitions for the further discussions by the parliament.
State is to own 34 percent of the Gatsuurt deposit, but will not invest and have costs shared, which leads to having no responsibility at the development of the deposit and instead is to receive royalties according to the draft.
S.BAYARTSOGT, HEAD OF OFFICE OF THE GOVERNMENT, during the Ministerial Hour last Thursday announced explained that the new draft proposal provisions the free ownership of the 34 percent which in turn frees Government of Mongolia from responsibilites such as investments and share of costs for the development of the deposit. Previous draft which provisioned the state ownership at 20 percent, which was seen by the MPs as unnecessary, therefore the corresponding royalties were introduced. This program frees the investment and cost sharing responsibilities and allows the Government to collect the royalties from the time the miner digs the deposit.
The royalties to be collected were based on state ownership of 34 percent and relative to the 5 percent 3 percent is suitable according to the working group conclusions. Total estimates of the taxes to be collected is at 78 percent.
Investors will benefit the from the deal until 2019 and since that they will be imposed high taxes, while the royalties will be available for collection from the time the mining operations start.
Parliament seemed as the lock for the bigger projects for quite some time since the operations of the new government. While this week parties and coalition groups at the parliament are being positive on moving forward the projects.
Cabinet submitted to State Great Khural the State Ownership of the Gatsuurt Deposit Resolution draft. Labelled as ''urgent“ the draft was received by the parliament two weeks ago and was waiting to be discussed.
The resolution draft provisioned the state ownership of 34 percent which is gaining attention from the party groups and coalitions seated at the parliament. The discussion of which was postponed at the initiation of the MPP group, but through their group meeting MPP members have agreed on discussing the draft by the parliament.
MPP GROUP leader D.Khayankhyarvaa stated that there are two main requirements in the scope of the draft discussion. First, state should own 34 percent for free and if it is not acceptable MPP proposes up to 6 percent on the special program to replace the 34 percent ownership, a 3 percent increase from the proposal submitted by the cabinet. Secondly, state is required to do beneficial agreements in regards with deposit developments.
DP GROUP on the other hand haven't discussed the draft of Gatsuurt deposit through their meeting. Sh. Tuvdendorj, Deputy Leader of the DP group, stated that the group is still on their stance to proceed with their initial suggestion that during the economic downturn cabinet's suggestion is the best solution.
“JUSTICE COALITION“ leader N.Battsereg expressed their stances as the state should own the portion of the strategic deposits.
Labelled as "urgent" this draft is okayed by the party groups and coalitions for the further discussions by the parliament.
State is to own 34 percent of the Gatsuurt deposit, but will not invest and have costs shared, which leads to having no responsibility at the development of the deposit and instead is to receive royalties according to the draft.
S.BAYARTSOGT, HEAD OF OFFICE OF THE GOVERNMENT, during the Ministerial Hour last Thursday announced explained that the new draft proposal provisions the free ownership of the 34 percent which in turn frees Government of Mongolia from responsibilites such as investments and share of costs for the development of the deposit. Previous draft which provisioned the state ownership at 20 percent, which was seen by the MPs as unnecessary, therefore the corresponding royalties were introduced. This program frees the investment and cost sharing responsibilities and allows the Government to collect the royalties from the time the miner digs the deposit.
The royalties to be collected were based on state ownership of 34 percent and relative to the 5 percent 3 percent is suitable according to the working group conclusions. Total estimates of the taxes to be collected is at 78 percent.
Investors will benefit the from the deal until 2019 and since that they will be imposed high taxes, while the royalties will be available for collection from the time the mining operations start.
Parliament seemed as the lock for the bigger projects for quite some time since the operations of the new government. While this week parties and coalition groups at the parliament are being positive on moving forward the projects.