On June 18, the Office of the President of Mongolia and the World Economic Forum, co-organizers of the ‘Fair Mineral Development’ Roundtable, held a press conference to inform journalists about the results of a two day event which took place at the Ikh Tenger Complex, in Ulaanbaatar on June 17 and 18, 2010.

The press conference for the ‘Fair Mineral Development’ Roundtable, initiated by the President of Mongolia at the regional World Economic Forum in Davos, Switzerland early this year was given by Britt D. Banks, Chair of Global Agenda Council on the Future of Mining & Metals; the World Economic Forum representatives Alex Wong, Senior Director & Head of Centre for Global Industries & Jan Klawitter, Associate Director & Head of Mining & Metals Industry, Global Leadership Fellow; P. Tsagaan, Senior Advisor to the President of Mongolia, and E. Sodontogos, Advisor Non- Staff and Personal Assistant to the President.

The goal of the ‘Roundtable’ was the drafting of a model minerals agreement

A Non-government organization, World Economic Forum, has been in operation for more than 40 years, during which time its major goal has been to conduct a series of research and observations of world economic trends. Based on results of the research, the World Economic Forum makes anticipated estimates and scenario building for possible outcomes of the world economy in upcoming years for the purpose of giving accurate evaluation of the international economy and methods of preventing unwanted conditions.

The participants of the Roundtable meeting were well pleased with the event, saying that it was been well timed and significant. As much as the mineral sector of countries varies depending on a multitude of factors, an internationally accepted Model Development Agreement in mining is still to be established. Thus, the “Fair Mineral Development” Roundtable’s main goal is geared towards building a Model Development Agreement and the Forum plans on presenting the draft proposal at the 2011 World Economic Forum next January in Davos.

In his speech at the Davos World Economic Forum in January 2010, Ts.Elbegdorj, President of Mongolia proposed two very enthusiastically welcomed initiatives; namely, the establishment of a Model Development Agreement & Capacity Building Initiative. The initiatives were discussed in detail at the ‘Fair Mineral Development’ Roundtable. More specifically, discussions of how the most suitable legal environment should be developed, and the necessity for building work-force capacity that is able to negotiate and establish mineral development agreements at the international level.

The President shared his vision for a standard investment agreement and a skilled workforce.

At the press conference, Advisor P. Tsagaan emphasized the significance of the Model Development Agreement Initiative being supported wholeheartedly by the World Economic Forum. As a result it was supported and co-organized in this round of meetings and gives Mongolia the opportunity to learn from other counties’ experiences as well as to share our own experience with thers in the mineral sector such as representatives of various international organizations, through information provided by the Public Relations & Communications Division, and the office of the President of Mongolia.

Opening the meeting, President Elbegdorj said, “Mongolia is the home of minerals. Fruits of the
minerals must have a positive effect on people’s lives. However, the level of Mongolians’ livelihoods is still low. Right now, Mongolia is seeking how to properly use its natural resources and become a country with sustainable development. Mining is not the key to development, but it is a capable sector for creating the income required for development. Both the Mongolian government and investors were hurrying to get an agreement and it spent five years to approve Oyu Tolgoi Investment Agreement. Now, a discussion on Tavan Tolgoi is on the way. I do not know how long it will take to approve the TT Investment Agreement. This process is not only a concern for Government, but also for other financial and business organizations. At this time, we need to have a standard investment agreement regardless of the kind of mineral, volume or location. Thanks to having standard investment agreement that was worked-out and has flexible conditions, millions of people of the world will be possible to benefit from it. If there were such a model international agreement, both Mongolia and foreign investors would have wasted many years approving the Oyu Tolgoi Investment Agreement. I hope that Mongolia and other countries will benefit from the model agreement which regulates taxation, environmental conservation and rehabilitation”.

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