|Hoping for a return to good old days of double digit growth|
Friday, July 1, 2016
Mongolia election results
The main opposition Mongolian People's Party (MPP) swept back to power in landslide parliamentary elections, results from Mongolia's election committee showed on Thursday, after campaigning dominated by concern over slowing economic growth.
The transformation of the former Soviet bloc state since a peaceful revolution in 1990 has been a big draw for foreign investors eyeing its rich mineral resources, unleashing a boom from 2010 to 2012.
The MPP's victory will likely be a greeted as a tailwind for the economy and international miners, as the party's success in attracting investors when it last held power, from 2008-2012, led to the country being nicknamed "Mine-golia".
The MPP, which has governed for most years since the revolution, won an 85 percent majority with 65 seats in the 76-member parliament, taking back power from the Democratic Party, an unnamed official from Mongolia's general election committee told a press briefing.
This was a landslide win for the MPP so they will have a mandate for change. I am reserving judgement until I actually see what they will propose. In the past Mongolian politicians have been famous for doing the exact oppositie of what is best for the country.
Now that the election is over we will see if Rio Tinto makes a move to consolidate its control over the Oyu Tolgoi mine by acquiring Turquoise Hill as had been rumored. The market seems to like the news as Mongolia Growth Group has rallied since the results came out.