Reuters: Resource nationalism to irk investors as Mongolia goes to polls

Resurgent nationalism in mineral-rich Mongolia, which will vote for a new government this week, will irk foreign investors, but it is unlikely to wreck sentiment, with politicians still desperate to keep the dollars flowing in. Foreign investment in Mongolia’s much coveted mines like the $7 billion Oyu Tolgoi copper project helped expand the economy at the fastest pace in all of Asia last year. But many of the country’s 3 million voters say the bulk of the nation’s nouveau wealth still lies in the hands of the political elite. Thursday’s parliamentary election will see politicians from two major parties – the Mongolian Democratic Party (MDP) and the Mongolian People’s Party (MPP) – fight to appease the masses. Foreign firms such as Rio Tinto can expect a more turbulent ride in the years to come. “We believe that (resource nationalism) is broadly bi-partisan and is to increase whichever party wins,” said the Ulan Bator-based Frontier Securities in a note to clients. To read the full article, click hereResource nationalism to irk investors as Mongolia goes to polls

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