There is growing momentum to define the core objectives and principles of local level agreements in Mongolia. But the national government itself must do a better job of facilitating a national dialogue.
In Mongolia, resource companies are encouraged to use local level agreements (LLAs), and though the quality and uptake of these agreements is not consistent, the country's experience provides important lessons for any resource-rich country that seeks to improve agreement-making in communities.
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.
The Canadian International Resources and Development Institute and NRGI hosted a flagship peer-to-peer learning and scenario-based group exercises workshop in Ulaanbaatar for over 20 young professionals from Afghanistan, the Kyrgyz Republic and Mongolia.
NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.