Interview with Battuya Jalbasuren, Managing Partner, Chinggis Law LLP

• 2016-11-01
• 769

Thank you for being our guest. Please introduce yourself and your law firm?
Battuya: My name is Battuya Jalbasuren. I am a Managing Partner of Chinggis Law LLP. We’re lawyers and attorneys who provide legal consulting services and advocacies specializing in mining, commercial and corporate areas of law. My partner Batbayar Enkhee is an attorney with extensive experience in administrative and criminal law practices. I worked at the Rio Tinto managed Oyu Tolgoi Project for 13 years as a Senior manager, Legal. Therefore, I am pretty familiar with the mining sector.

I see, and that’s very interesting. Can you describe Oyu Tolgoi Project in a few words?
Battuya:  Certainly. This is a giant copper and gold project which is exemplary in many ways. Oyu Tolgoi’s safety goal is ‘Zero harm”. Its operational management is excellent. Oyu Tolgoi’s mine site is big, and modern. It will certainly generate wealth for Mongolia.

Being a legal practitioner, how do you find current situation and future perspectives of a mining sector in Mongolia?
Battuya: At this stage, the mining industry is experiencing certain challenges because of lower commodity prices, and the oversupply of certain minerals in the key markets like China. Although the gold price is reasonably good at this stage, the copper price fell substantially. We all saw how coal prices went down, and devalued coal producers (even the coal giants) and negatively affected their ability to operate. The world has seen many occasions where coal deposits were sold at cheap prices. Mongolia needs to be able to respond to mining product price fluctuations by diversifying its economy and expanding its export potential. Not only China, but other countries in Asia and Europe should be able to import Mongolia’s mining products. For that, very good infrastructure and much improved logistical capacity is crucial.

The World Bank is very positive about the mining sector, given the extent and quality of our copper, gold, coal and uranium deposits.

What, do you think, should be done in Mongolia to improve its legal environment for mining investment?
Battuya:  The most important goal must be “certainty and stability of laws and policies”. This is the number one thing foreign investors wish for the host country so they operate for a longer term in a sustainable way. The mining business is a time consuming and high risk business. It has unavoidable cycles: exploration, development and operation.  All these cycles are inter-dependent, costly and risky in their own nature.

Mining operation requires clarity in laws, so the companies can optimize their design, operational model and efficiency. Outdated and unclear laws, or gaps in laws do not help in developing safe and profitable mining business. The legal environment, on many occasions, needs to be flexible to respond to different scenarios of mining businesses (small or large, coal mine or copper mine), and to allow mining management based on risk and responsibility awareness, and the best management practices.

In addition, Mongolian laws need to improve to sufficiently respond to commercial needs, goals and contexts of mining businesses. This, basically, means that laws themselves must encourage the value of time, innovation, technology, profit opportunities, and options to exchange values by various stakeholders of mining business.

How, do you think, Chinggis Law LLP help with greater mining business development of Mongolia?
Battuya: The key question for mining investors in Mongolia is this – How secure is my investment in Mongolia? Is my exploration or mining license safe and legal? We can help make sure your investment is secure. Second, Mongolia’s tax laws are complex, and you need good legal advice to make sure you comply, do not take chances that your staff may go to gaol. See us first.

Lawyers are very crucial in the development of mining business in Mongolia. First of all, they can see challenges caused by laws and policies when they practice. They may well become a credible voice in improving the legal environment for the mining sector by advising on bills, and policies, and by becoming an important bridge between businesses, and policy makers. We, lawyers, can initiate conferences and workshops involving business managers, academia, judges, arbitrators and legal practitioners. We could also pioneer in the efforts to substantially improve legal training and curricula in mining and related laws.

Chinggis Law LLP has a particular goal to become a leading law firm which provides excellent legal services to the mining sector and policy makers. In addition, we aim to be a credible thought leader in order to improve Mongolian legal environment for the mining industry. In this regards, we fully commit ourselves to be a recognized legal practice and knowledge hub in mining laws.
Thank you and wish you all the best.