Since the signing of the landmark Oyu Tolgoi investment agreement with the Government of Mongolia, domestic and foreign partners have rallied to develop Mongolia’s vast mineral resources. On the basis of contracts that were negotiated in “good-faith,” significant capital is being raised in global capital markets that will propel jobs and prosperity for all Mongolians. This growth in addition to promising dramatic expansion of infrastructure, health, education and other services will provide job opportunities for generations of Mongolians. We welcome the government’s clear statement of support for the stability of the multi-billion dollar Oyu Tolgoi investment agreement. Capital abhors insecurity and unpredictability, and the recent initiatives to renegotiate contracts and amend current law fails to recognize the damage that will be done to the reputation of Mongolia as an emerging market where a relatively progressive development and growth agenda have attracted wide-spread interest and investment. When the OT agreement was signed in 2010, it was hailed by the investment community, both domestic and foreign, for the powerful signal that it communicated. It affirmed the Government’s “open for business” policy and it demonstrated Government and Parliament’s willingness to amend laws ensure the commercial viability of mining projects. Efforts to renegotiate Oyu Tolgoi, or any other project would undermine the country’s efforts to build a reputation as a legitimate partner to business, both domestic and foreign. Mongolia has begun cultivating a reputation as a sound and predictable place to do business, where risks and rewards are fairly allocated. It is in the interests of the Mongolian people to carefully protect our reputation for trustworthiness. The Business Council of Mongolia, on behalf of its 200 members employing tens of thousands of Mongolians, applauds the Government for reaffirming the stability of agreements into which it enters. The BCM will mobilize all resources at its disposal to support the government to strengthen the rule of law and contribute to Mongolia’s growing prosperity.

The Business Council of Mongolia

BCM Board of Directors:

Boroo Gold
Breakthrough PR
Erdene Resources Development
Just Group
Khan Bank
Leighton Asia
Lynch & Mahoney
Mandal General Insurance
MCS Group
MICC
Mongolian Star Melchers
Mongolyn Alt Corporation
Monnis International
Newcom Group
Oyu Tolgoi
Peabody Energy
Petro Matad
Pricewaterhouse Coopers
QGX Mongol
Rio Tinto
Sant Maral Foundation
South Gobi Resource
Tavan Bogd
Trade Trade & Development Bank