source: Frontier securities

MP N. Batbayar is leading a movement to remove S. Batbold from his position as Prime Minister. Batbayar is one of the 20 MPs protesting the Oyu Tolgoi investment agreement last month. The faction demanded that the Mongolian government's stake in the project increase from 33 percent to 50 percent ahead of schedule.

“The joint statement from the government of Mongolia with investors is a desecration of Mongolian law. This is unprecedented, and the prime minister broke the law.

The law requires 19 signatures to bring the movement forward to Parliament. However it also implies that even just one is enough to open discussions. Batbayar, however, did not comment how many MPs have signed the petition thus far.

“This is not unexpected as some kind of retribution and responsive move was expected from the anti-coalition after joint statements were made,” said Dale Choi, chief investment strategist of Frontier Securities. “It would be naive to expect that troubles will easily disappear.”