MAC: Mines and Communities

Mongolians end protests on government promises to investigate mineral contracts

Published by MAC on 2006-04-24


Mongolians end protests on government promises to investigate mineral contracts

24th April 2006

If it weren't repeated, one would take the risible projection that Ivanhoe will create 117,000 jobs in Mongolia as a typographical error. But protestors have succeded in pushing the Mongolian government into at least looking into the possibility that the country should get some meaningful benefits from its mineral wealth.


Mongolians end protests demanding resignation of government, president

Ganbat Namjil, Canadian Press

http://www.canada.com/victoriatimescolonist/news/business/story.html?id=508d3e4c-5e2a-4e60-9ba7-3f3ab5acc87a&k=90794

24th April 2006

ULAN BATOR, Mongolia (AP) - Some 200 demonstrators - including 10 hunger-strikers - have ended their protests over alleged government corruption and the mishandling of mineral wealth in Mongolia after the country's leaders agreed to investigate their complaints.

The activists had been camped in a central square in the capital Ulan Bator for two weeks when their demonstration ended late Sunday. They were demanding that the government obtain favourable terms from a Canadian mining company's concession to mine huge copper and gold deposits in the southern Gobi region - or resign.

The demonstrators gave up their protests after Prime Minister Mieagombo Enkhbold and his cabinet ministers agreed to form working groups to investigate agreements signed with foreign mining companies under previous governments.

The groups will also look into mining licensing issues and work together to amend the Mongolian minerals law, passed in 1997, which protesters say favours foreign mining companies.

"We demonstrated during the last two weeks to establish a just and transparent government, and as a result they have listened to us," said S. Ganbaatar, an activist with Radical Reform, one of several civic groups that claim to represent Mongolia's poor and unemployed.

The company under the spotlight, Ivanhoe Mines Ltd., has not been accused of improprieties. The Vancouver-based company discovered the massive Oyu Tolgoi copper and gold deposit in the Gobi Desert and is negotiating an agreement with the government on tax and other policies to develop the project.

"Ivanhoe Mines Mongolia received its mining licenses for Oyu Tolgoi from the government of Mongolia in 2003 based on transparent and rigorous compliance with all Mongolian laws, policies and procedures," Layton Croft, executive vice-president for corporate affairs for Ivanhoe Mines, said Monday of the government's plan.

"Ivanhoe welcomes any opportunity for open dialogue based on facts that will result in a mutually beneficial stability agreement so that the Oyu Tolgoi project will bring significant and lasting benefits to Mongolia and the Mongolian people," Croft said.

Ivanhoe has said the project will generate 117,000 jobs and boost the economy.

Last week, demonstrators burned effigies of President Nambaryn Enkhbayar, Enkhbold, the speaker of parliament, and Robert Friedland, chairman of Ivanhoe Mines.

Late Sunday, doctors checked the 10 hunger strikers as protesters packed away their traditional Mongolian tents, called gers. All were in good health except for one man who had fainted.

Copper mining is a major part of the economy of this former Soviet satellite that is sandwiched between China and Russia. The country and its 2.5 million people have suffered a steep economic decline since radical free-market reforms were launched in the early 1990s.

Politicians have clashed repeatedly over how to exploit the mineral resources. The opposition accuses the government of giving away Mongolia's wealth and wants the law changed to give the government a large share of all foreign-owned mines.

© The Canadian Press 2006


Ivanhoe at centre of storm over Mongolia's resources: 3,000 in protest; Vancouver miner found gold, copper

http://www.canada.com/montrealgazette/news/business/story.html?id=c5afaf69-f683-4fa0-ad4f-f67fdc04e345

19th April 2006

(AP) Demonstrators marched outside Mongolian government headquarters yesterday, burning effigies of the country's leaders and demanding their resignations over alleged mishandling of mineral wealth in dealings with Canada's Ivanhoe Mines Ltd.

Some of the protesters have been camped in the city's central square for nearly two weeks. They are demanding that the 3-month-old government resign if it cannot obtain favourable terms from Ivanhoe for the company's concession to mine a huge copper deposit in the southern Gobi region.

"Resign! Resign!" chanted a horseman dressed as an ancient warrior, circling the massive Government House adjacent to the square.

An estimated 3,000 people joined the protest. Hundreds of police guarded government offices, but did not intervene.

The protesters burned effigies of President Nambaryn Enkhbayar, Prime Minister Mieagombo Enkhbold and Robert Friedland, chairperson of Ivanhoe Mines, the Vancouver-based company that discovered the massive Oyu Tolgoi copper and gold deposit in the Gobi Desert.

There have been no accusations of improprieties by Ivanhoe, which is negotiating an agreement with the government on tax and other policies for developing the project.

Protesters said they were starting a hunger strike yesterday that would add more people each day until opposition demands were met, said S. Ganbaatar, an activist with the Radical Reform, one of several civic groups claiming to represent the poor and unemployed.

They later marched to the headquarters of the Mongolian Revolutionary People's Party that leads the ruling coalition.

Protests have become increasingly common in Mongolia's 16-year-old democracy, with political parties often trying to capitalize on demonstrations and public disaffection. The current government was installed in January after a wave of demonstrations.

Copper mining is a major part of the economy of this impoverished former Soviet satellite, a sprawling grassland where many people are nomadic herders of cattle and sheep.

Politicians have clashed repeatedly over how to exploit the country's mineral resources. The opposition accuses the government of giving away Mongolia's wealth and wants the national minerals law changed to give the government a large share in foreign-owned mines.

Ivanhoe has said the project would generate 117,000 jobs and pay 46 per cent of its pre-tax profits to the state over the contract's 35-year term.

© The Gazette (Montreal) 2006


Mongolia: miles de personas se manifiestan ante la sede del gobierno para protestar contra corrupción y mala gestión de riqueza minera

http://www.europapress.es

ULAN BATOR, 18 Abr. (EP/AP) - Miles de manifestantes se congregaron hoy ante la sede del Gobierno de Mongolia y quemaron retratos de los dirigentes del país en protesta por la presunta corrupción y la mala gestión de la riqueza minera del país.

Los líderes de la protesta anunciaron una huelga de hambre para reclamar una respuesta a sus quejas y la renuncia de los principales responsables. Se estima que unas 3.000 personas participaron en la manifestación, durante la que se quemaron retratos del presidente mongol, su primer ministro y el presidente del Parlamento.

Algunos de los manifestantes llevan acampados en la plaza central de la capital desde hace dos semanas. Estos reclaman que el Gobierno, que sólo lleva tres meses en el poder, dimita si no puede conseguir términos favorables de la compañía canadiense Ivanhoe Mines para la explotación de una gran mina de cobre en la región de Gobi, en el sur del país. Entre las denuncias también hay quejas por corrupción, pobreza e incluso demandas de compensación de antiguos propietarios de una tienda que fue incendiada hace un año.

Durante la manifestación de hoy también se quemaron retratos del presidente de Ivanhoe Mines, Robert Friedland, cuya compañía descubrió el gran depósito de cobre y oro de Oyu Tolgoi, en el desierto de Gobi. La firma canadiense está negociando un acuerdo con el gobierno sobre los impuestos y otras políticas para desarrollar el proyecto.

Los manifestantes indicaron que hoy comienzan una huelga de hambre, empezando por diez personas. Otras diez más se irán sumando cada día hasta que sus demandas se cumplan, indicó S. Ganbaatar, activista de Reforma Radical, uno de los varios grupos cívicos que dicen representar a los pobres y los desempleados del país.

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