NRGI hosted a discussion on the subject of enforcing fiscal discipline in Mongolia. A consultant for NRGI presented the findings of her research, entitled “Can the proposed fiscal council help improve fiscal discipline in Mongolia?” to a diverse audience of government officials, researchers, private sector executives and citizens.
In a report, Rio Tinto was accused of “illegitimately lowering” its withholding taxes paid to the government of Mongolia in relation to the Oyu Tolgoi copper mine. Rio allegedly did this by using a double tax agreement between Mongolia and the Netherlands, in addition to which it negotiated an even lower rate of withholding tax in its amended mining agreement in 2011. This piece reviews Rio’s tax arrangements.
Andrew Bauer, Dorjdari Namkhaijantsan, David Mihalyi
Mongolia is facing a debt crisis unlike anything seen since the end of communism. It is not too late to avoid a chaotic sovereign default, whereby the government is suddenly unable to pay its bills. Several options are available to stem the crisis.
In November 2015, PWYP members from across Eurasia met in Ulaanbaatar for an NRGI-led training session to discuss common extractives governance challenges their countries face. Shrinking civil society space was a dominant concern.
Negotiating complex mining deals can be challenging for resource-dependent countries under any circumstances. But commodity price volatility adds an additional challenge to the mix, as Mongolia’s recently concluded renegotiation with Rio Tinto on the Oyu Tolgoi project illustrates.