PARTS OF SPEECH

“Our government has adopted an agenda to deal with deficiencies that cause investors to think twice about investing in the nation. We need to create not only heavy debate and discussions, transparent discussions [within our government], but more importantly we need to create a stable and predictable business environment, a competitive business environment for domestic and international investors.”

S. Batbold, Prime Minister.

“Oyu Tolgoi is going to be among the top five mines in size around the world. The only way to describe it is that it is just an awesome deposit. I have been 30 years in the mining industry and I haven’t seen anything quite like this.”

Keith Marshall, president and CEO of
Oyu Tolgoi LLC.

“It took us only six months, from the acquisition to the initial blasting. In Australia, the same process could take years. Mongolia is a mining-friendly country with laws that allow co-production and joint ventures for mining projects. We have to be there to learn about the local environment, law, local conditions and customs. We want to send a strong signal to our partners that our management team is not there for sightseeing. We are committed.”

Joseph King Jun-chih, CEO, North Asia Resources.

“In a world in which China continues to grow at eight per cent a year, you are going to get a monster boom in Mongolia. With GDP growing 30 per cent a year because of the mining projects, it’s the most interesting story in Asia at the moment.”

Christopher Wood, economic strategist.

“The goal of the offering is to ensure that Ivanhoe Mines remains in a strong financial position to bring the Oyu Tolgoi copper-gold mining complex into operation ahead of schedule in 2012 and to reinforce the company’s independence to pursue strategic alternatives to protect and enhance shareholder value.”

Robert Friedland, CEO, Ivanhoe Mines.

“We have advised the representative, the Chief Executive Officer and board of directors of Rio Tinto that if the rights offering is delayed or impeded by Rio Tinto’s conduct, we intend to hold Rio Tinto fully liable for any and all losses Ivanhoe may suffer as a result of Rio Tinto’s actions.”

An Ivanhoe Mines statement.

“Our first priority is to the Oyu Tolgoi project and making sure that nothing stands in the way of its swift development.”

An unidentified spokesman for Rio Tinto.

“Development can come only if there is investment, and investment will come only if there is partnership between the public and private sectors.”

S. Demberel, Chairman,
The Mongolian National Chamber of Commerce and Industry.

“The pivotal role of small and medium enterprises is overshadowed by the attention given to mining. Everybody talks about the 3,000 jobs Oyu Tolgoi would provide, as if there is no other avenue of employment. In fact, our members can immediately find work for 14,000 people, with just a little help from the authorities.”

Kh. Ganbaatar, Executive Director,
The Mongolian Employers’ Federation.

“I have had to pay bribes, small and , for all the 17 years I have had my business. Money has to be paid before I get any order and the list of those demanding money is getting longer. Now it has become such that I get a contract to supply students’ uniforms only after paying a bribe to the director, other officials and even to teachers. Everybody has to be kept satisfied. In other sectors also, officials in state organizations demand donation from private businessmen whenever there is some anniversary or celebration. Much of the money thus collected goes into private pockets. The disease is spreading daily.”

Unidentfied businessman, speaking at a meeting of entrepreneurs. 

“My experience is that private enterprises cannot take a step if they don’t give bribes to corrupt officials everywhere. Nothing will move if money is not paid. The whole system of tenders is full of holes.”

Another entrepreneur, at the same meeting.

“I do not demand any subsidy from the government but domestic industries cannot survive and flourish without easier access to affordable credit. I call upon Mongolians to be more industry-minded. We receive free or heavily subsidized education, and can pay back our debt to the state by generating employment and producing import substitutes.”

M. Davaasuren, General Director of Gan Khiits.

“We must build a new, sustainable energy future where we use energy efficiently and rely on alternative sources of energy to meet demand.  Building this future won’t be quick or easy, but it is essential. Mongolia and the USA can do more together than we can do alone.”

Daniel Poneman, U.S. Deputy Secretary for Energy.

“Using more coal is a matter of human rights in that cheap coal offers a higher standard of living for all. Cheap coal power allows people to live better and live longer. It would be inhumane to populations desperate to lift themselves out of poverty if the richest nations in the world force developing countries to put the current CO2 emissions-heavy coal power plant model on the shelf. It’s energy apartheid to sit here in the U.S. and say the rest of the world cannot enjoy the same lifestyle.”

Fred Palmer, senior vice president of government relations for Peabody Energy.

“We unfortunately don’t have a professional government. It consists of a bunch of politicians who were not properly trained.”

D. Jargalsaikhan, economist and political analyst.

“Nobody is perfect and the party leadership can make mistakes. We are not afraid of fair criticism but are not prepared to be insulted. WE know we cannot please everybody. If there is no public debate, one will say it is rule by coterie. If there is open debate, one will say the MPRP is full of factions”

U.Khurelsukh, MPRP Secretary-General.

“The Ministry of Social Welfare and Labor understands itself as a Ministry of calculating and distributing welfare, and has done little for the labor sector. Not merely does it not have any long-term policy to generate employment or on wages in different sectors, it cannot even give consistent unemployment figures. If so many state officials are unable to provide accurate figures, maybe the work should be given to NGOs who could do a better job of collecting information.”

L.Gantomor, deputy head of the DP group in Parliament.

“It is time the Government showed its iron face and made it clear to arrogant mining investors that their writ does not run when State policy is decided. We need to take action against some foreign invested companies which seem to say, ‘We will continue with our mining because this law cannot be enforced and will also get it changed because we don’t like it.’”

S. Byambatsogt, MPRP MP.

“We targeted Puraam, a Chinese firm, and Centerra Gold, a Canadian-operated company, because they are mining illegally in a historically important place and right next to the headwaters of two crucial rivers in a healthy forest region in defiance of existing laws. They need to be shut down. I know I broke the law and may end up with a five-year prison term. It is a sentence that I am more than willing to endure, if it will help preserve Mongolia’s environment. Exploiting everything is not development.”

Ts. Munkhbayar, a former herder turned conservationist and
recipient of a 2007 Goldman Environmental Prize.

“When you make a law, you have to put a lot of thought into it, and in this case, it looks like the homework was not done very well. This will increase and escalate, if there is no mechanism for participation and no mechanism to resolve conflict. Frequently changing laws, myths about mining, and lack of informed decision making in Mongolia leave both mining companies and the public frustrated.”

Ms. Rena Guenduez, senior mining advisor at the USAID-sponsored Economic
Policy Reform and Competitiveness Project.

“We have done nothing illegal and we fully support environmental protection provisions. There was not enough consultation done with the industry to create a law that could be effectively implemented.” 

Doug Krahn, Centerra Gold’s vice president for Mongolia.

“Our bank was a pioneer by accident but we became a leader by choice, introducing appropriate products and technology, and placing customers’ interests first whenever some change was considered. Our success in the face of great odds is due to our ability to face the reality of circumstances, however unpleasant it might have looked, our determination to find a way out and then proceed on that path unitedly. Hard work also contributed to the growth.”

B. Medree, Executive Director of Trade and Development Bank.

“If the economy has to grow, there must be adequate investment in infrastructure, even if that means a budget deficit. It is natural at times of growth to have ger budgets. This accumulation of cash in people’s hands could lead to high inflation, as in 2007, but this is an unavoidable risk.  Mining resources revenue would be generated for 50-60 years, but the country’s development policy should be for a longer term, say for 60 years after these 60 years of mining growth. Mineral resources development must be supplemented with human resources development.”   

Ch. Khashchuluun, head of the National Development and
Innovation Committee.

“The socio-economic challenges when mining transforms an economy are enormous and there’s a tremendous amount of risk associated with that. But when they plow that back into their own nation to do the right sort of things that one would imagine -- building roads, hospitals and all the rest of it -- they bring home so much cash in one go it has this enormous splash effect on the economy,”

Nigel Finch, senior lecturer at the University of Sydney’s school of
business and economics.

“We are strong believers in national champions. In our experience, in our part of the world, Japan and Korea have succeeded in part because of their large corporations. The next step of our industrialisation requires this more sophisticated type of business.”

D. Zorigt, Minister of Mineral Resources and Energy.

“How to mine without polluting, ruining lifestyles, fitting in with the existing community are the real challenges. Often it’s not the obvious socio-economic impacts that are hardest. For example, if you build a mine in some parts of Africa, you obviously want to employ local people. Mining at a stroke destroys centuries of culture, because the young men are the men who have salaries and making good money -- how on earth do you stop that, because they’re the ones driving the trucks and equipment? But then they effectively almost take control of the tribe, because they’ve got the money.”

Chris Hinde, editorial director for Aspermont UK, publisher of
mining industry publications.

“Our Civil Will party has been against the windfall profits tax from the very beginning, even though we were in a minority. When we said it was wrong, others called us unpatriotic.  The tax did earn revenue, but the state budget cannot be made to depend on one tax. The tax delayed the Oyu Tolgoi agreement and if it were not canceled, other large mining projects would also not be taken up, leading to more unemployment and economic stagnation. It is unfortunate that we are not the best, but it would be terrible if we are the worst.”

S.Oyun, MP and former Foreign Minister.

“Mongolia wants the proposed transit tariff agreement with Russia to be valid for 25 years, but Moscow prefers a far shorter term, not longer than 3 or 4 years.”

Kh.Battulga, Minister of Road, Transportation,
Construction and Urban Planning.

“Mongolia needs foreign help to mine and process the uranium it has and Russia is a natural choice, as it is closest to us, and has the right technology and long experience. We planned to involve Toshiba and also the Canadians, but our Russian partner wants Canadian companies out so that Russia and Mongolia can cooperate 51:49.”

D.Sugar, head of The State Property
Committee.

“Every country has its own legal environment and I am sure Canadian companies in Mongolia do and will work strictly within it. Mining companies should also pay attention to environmental protection as an expression of social responsibility. I think Canadian companies are good in these respects.”

Gregory Goldhawk,
Canadian Ambassador to Mongolia.

“Due to the constraints to supply and the good outlook for demand we’re pretty confident of a strong copper price going forward. Challenges in terms of current supply, including issues such as industrial action, natural disasters and constraints to input such as power and water are set to persist. We expect a lot of those delays to continue. In emerging regions there are a lot of challenges, such as developing transport, improving the security of tenure and building a skilled workforce. These will need to be overcome for supply to meet demand.”

Matthew Holcz, general manager of
business development in Rio Tinto’s copper division.

“Mongolia has huge opportunities with regards to development of the natural resources. If they’re to monetize those opportunities, they’re going to need efficient capital markets, and London truly is the center for global finance for natural resources companies. We’re definitely here to win [the management tender]. We are here for the long term and would like to use London’s expertise to support the future development of the Mongolian capital markets.”

Ms. Tracey Pierce, director of equity primary markets,
London Stock Exchange.

“Mongolians can do the work. We will not permanently hand over the Mongolian Stock Exchnage to any foreign bidder. If we took back our Oyu Tolgoi, we could have raised several billion dollars like Ivanhoe [Mines].”

R. Sodkhuu, Executive Director,
Mongolian Stock Exchange.

“Mongolia’s democracy is not only irreversible but it is consolidating despite all the ups and downs, all the challenges faced in dismantling an old system and mindsets. Lack of transparency, corruption, disrespect for human rights and injustice are some of the top challenges that impede functional democracy.”

Ts. Elbegdorj, President.