Source: REUTERS
January 05, 2012

ULAN BATOR Jan 5 (Reuters) – The Mongolian Democratic Party will withdraw from the coalition government ahead of parliamentary elections scheduled for June in the remote and landlocked country, the party said on Thursday, leaving a number of vacancies in cabinet.

The announcement was made at a media conference by party chairman Norov Altanhuyag, who is also deputy prime minister in a sometimes fragile coalition with the Mongolian People’s Party.

Mongolia is expected to be one of the world’s fastest-growing economies over the next decade as a result of a mining boom and billions of dollars in foreign investment.

The $10 billion Oyu Tolgoi copper-gold deposit, 66 percent owned by Canada’s Ivanhoe Mines, is set to begin operations later this year. Foreign investors are also eyeing stakes in Mongolia’s 7.5 billion-tonne Tavan Tolgoi coal mine.

However, investors have warned that Mongolia’s weak legal system, together with political instability and populist legislation ahead of the elections, could serve to undermine confidence.

The Democrats’ withdrawal will leave vacancies at the ministries of finance, defence, transportation, environment and health.

The coalition led by prime minister Sukhbaatar Batbold was formed after 2008 parliamentary elections resulted in riots across the capital of Ulan Bator. Five people were killed in clashes with police amid rumours of voting irregularities.

“By having a coalition government, Mongolia was able to have a stable political life and overcome the global financial and economic crisis with less damage,” Altankhuyag was quoted as saying by China’s Xinhua news agency.

He said the decision would be submitted to party members for formal approval at their annual summit next week. (Reporting by Khaliun Bayartsogt, Writing by David Stanway)

Source: www.NEWS.mn
May 06, 2011

MPs G.Bayarsaikhan, D.Gankhuyag and S.Erdene yesterday submitted to Speaker D.Demberel a seven-point note to demand the dismissal of Minister for Mineral Resources and Energy D.Zorigt. Their principal charge relates to Zorigt’s failure to implement the 57th protocol of Parliament, which wanted Mongolia to retain 50% ownership of the Oyutolgoi deposit. The agreement with the investor does give Mongolia 50% ownership, but only after 30 years of operation.

They also charge the Minister with inaction in starting work on the 5th power plant even after Parliament decided in 2008 to build it. Not having new plant has added to the air pollution in Ulaanbaatar. The Minister is also blamed for talking no action on improving mine safety in Nalaikh, leading to 46 deaths in recent times. They also fault Zorigt for the delay in taking decisions on Tavantolgoi.

According to law, the relevant Standing Committee should discuss the demand and submit its opinion to Parliament within a week. Parliament should reach a decision within another week from then.