(Corrects story from Aug 10 to clarify that it is the Mongolia
People’s Revolutionary Party (MPRP) that is in favour of
nationalising resources and not the Mongolian People’s Party
(MPP). Also corrects to say Nambar Enkhbayar is the chairman of
the MPRP.)
By Michael Kohn
ULAN BATOR, Aug 10 (Reuters) – Norov Altanhuyag of the
Democratic Party (DP) was confirmed as Mongolia’s new prime
minister on Friday, ending weeks of political uncertainty after
the party failed to win enough seats in a June election to form
a government on its own.
The transfer of power to the DP has raised hopes of a
tougher stance on graft and a friendlier investment climate,
after the parliamentary results last month prompted concerns
that more power would be handed to politicians who advocate
local control of mines.
Former president Nambar Enkhbayar was sentenced to four
years in prison for corruption earlier this month. Enkhbayar is
the chairman of the Mongolia People’s Revolutionary Party
(MPRP), which is in favour of nationalising resources and is the
second largest party in the new coalition government.
In a note to clients, private equity firm Origo Partners
called Altanhuyag’s confirmation as the country’s 27th prime
minister “a positive development”, adding it viewed Enkhbayar’s
conviction “a landmark event” for stronger anti-corruption
regulatory enforcement.
The DP won 31 of the 76 seats in the June 28 vote, forcing
it into a coalition with four smaller parties, including the
MPRP. The DP is expected to comprise 75 percent of the new
cabinet.
The DP’s rise to power will calm investors who had been
concerned about the MPRP’s nationalistic stance, with Enkhbayar
having called for some major mining contracts to be renegotiated
with a view to limit foreign ownership.
One of the targets was the massive Oyu Tolgoi copper and
gold project, which is set to start production later this year
and is 66 percent owned by Rio Tinto and Turquoise Hill
Resources, with the remaining stake held by the
Mongolian government.
“The newly established government will welcome foreign
investment, we will guarantee them a stable legal environment,
we will try to fulfil our party agenda,” MP Chimed Saikhanbileg
told Reuters in a telephone interview.
Mongolia is gripped by a mining boom that is set to
transform its tiny economy, but political uncertainties have
threatened to overshadow efforts to attract foreign investment
needed to develop mines and build essential infrastructure.
(Writing by Carrie Ho; Editing by Michael Roddy)
