News, not earth shattering (material), but positive.
During the past 10 days we have met with Dr. Sodomtseren, Minister of Agriculture and Industry, Mr. Enkhbold, Director of Geology, Mineral Authority of Mongolia, Mr. Sandag, Counsel General for Mongolia, and Mr. Ganbat, Counsel for Mongolia. There was also meetings with the Mongolians and officials from Natural Resources Canada, largely relating to resource taxation issues. Later, we had a dinner meeting sponsored by the Canada Mongolia Business Association attended by the Mongolian Delegation, the Vancouver-based honorary Counsel to Mongolia, several other Canadian mining companies doing business in Mongolia and several Canadian mining companies considering doing business in Mongolia. Mongolyn Alt Corporation did not send their representative that was expected.
The direction of all of these meetings was the mining business in Mongolia, and the requirement that certain fiscal changes had to be implemented to improve the business environment. The Mongolian Government announced that a working group had been formed to consider revisions to the mining law, and that they welcomed industry input. Much of the discussion centered around reductions of tax rates and the delegation suggested that changes were being considered. Other meetings not attended by myself with the Mongolian Government officials and other international companies focused on the taxation issue as well.
Prior to the PDAC last week, we had been informed that the situation regarding the Mongolyn Alt Corporation loan default with the Trade and Development Bank had gone to court, that all sides had been heard and that a decision was imminent. Unfortunately it hadn't been handed down (or at least I haven't been informed of it) by the time of the PDAC.
We have no ability to guess the timing of court decisions in Mongolia, nor could we presuppose what the outcome might be. We will get the information out as soon as it happens.
Dave |
