Mongolia nationalizes mine, prompts warning on investors

Published February 14, 2017

Mongolian lawmakers have told the government to revoke a private company's purchase of a stake in a major copper mine, prompting the president to warn they might scare away investors as the country tries to reverse an economic slump.

The move highlights the political sensitivity of Mongolia's copper, gold and other mineral wealth, the source of more than 90 percent of the North Asian country's export revenues.

Legislators approved a resolution Friday calling on Prime Minister Jargaltulgyn Erdenebat to revoke a Mongolian investor's $400 million purchase of a Russian state company's 49 percent stake in Erdenet Mining Corp. They want the government, which owns the rest of Erdenet, to take full control.

Investor confidence has been shaken by previous disputes over the role of foreign mining companies.

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