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Turquoise Hill Resources Ltd. TRQ


Primary Symbol: T.TRQ

Turquoise Hill Resources Ltd is a global mining company that primarily mines copper, gold, and coal in the Asia-Pacific region. The company holds a 66% interest in Oyu Tolgoi, one of the world's largest copper-gold-silver mines, which ships concentrate to customers in China. Oyu Tolgoi is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border. The company also holds interests in companies that mine...


TSX:TRQ - Post by User

Post by wawahunton Dec 04, 2012 2:16pm
225 Views
Post# 20682070

Canadian Ambassador ..... OT

Canadian Ambassador ..... OT

Greg Goldhawk: I have a lot of respect for this country and for what Mongolia has achieved
By Allyson Seaborn
Next September marks the fifth anniversary of Canada’s residential embassy in Mongolia – and a busy embassy it is at that. Prior to this time period, The Canadian Ambassador to Mongolia resided in Beijing and dealt with official matters from a distance of over one thousand kilometers. So what’s changed since then? Well, in a nut shell – quite a lot. Mongolia’s economy has grown in leaps and bounds, tourism numbers are up – as are the number of Canadians coming to live here as expatriate teachers, volunteers, miners and business investors.
I meet Canada’s Ambassador to Mongolia, the Honorable Greg Goldhawk at the Embassy’s official headquarters in Central Tower. I regret asking him for his time on the first Mongolian public holiday marking the birthday of Chinggis Khan. He’s at a function at the State Great Khural (Parliament House) with President Elbegdorj and Prime Minister Altankhuyag and has to leave slightly early in order to meet with me. I’m comforted with an honest, “Please it’s not a problem at all,” as he walks through the entrance and sits down. Instantly, I feel at ease. It’s hard not to like Ambassador Goldhawk from the get go.
Thankfully, Goldhawk is not one to shy away from political or economic banter and our discussion is interesting from the start. Goldhawk is well aware of the fact that expats in UB, many of whom are Canadian, are uncertain at the moment – weary of what the next six to twelve months may bring in terms of political and economic stability. People are asking themselves whether it’s worth bringing their hard earned dollars and investing in what appears to be a disordered and ever-changing system. Direct foreign investment into Mongolia is at a standstill in light of recent this uncertainty. The hot topic of resource nationalism commonly comes up among Mongolians and expats alike, many having different theory on how things will pan out over the next 12 months.
Goldhawk dives right in, “Canada has had its own intense debate over many years about the role of foreign investment in our country. Canada parallels Mongolia. As a nation we were founded due to the exploration of natural resources.”
I ask him what the majority of Canadians think about the role foreign investment plays and he responds by saying, “Most Canadians are of the view that foreign investment is necessary and desirable in a globalized world as it brings capital, knowledge and jobs.”
Originally the Americas were discovered and explored solely for commercial reasons and for business ventures of the Spanish, Portuguese, English and of course the French. Modern day Quebec was once referred to as Nouvelle-France or “New France” – an area colonised by Jacques Cartier in 1534. Like Mongolia, Canada’s economy was originally built upon a resource base. Goldhawk describes how the Canadian capital of Ottawa was once a lumbering town know for its “sawdust, lumber and laws.” But it wasn’t just lumber, early explorers were equally interested in metals and furs.
A little over twenty years ago, Mongolia removed itself from the collapsing Soviet Union. Since then, the country has undergone momentous political, economic and social change. I’m curious how Goldhawk finds it all – living through Mongolia’s rapid evolution. Goldhawk says: [it is] “exciting – because it is changing so quickly. We’re never bored here.” He asks: “Could Canada have come this far in twenty years? I’m not so sure we could have. I have a lot of respect for this country and for what Mongolia has achieved in such a short time.”
But he’s not just being diplomatic in his response – he means it. Goldhawk’s openness and honesty is refreshing. He leans back in his chair and says, “When we as Canadians look at Mongolia, we want what Mongolia wants for this country. We want it to succeed in the evolution of its democracy and we’re half way there. Foreign investment is good provided you have the good and sensible legal and regulatory framework which supports it. Mongolia is half way there.”
It’s not just about supporting local Canadian business interests or visas and passports. “We’re doing other things like looking at reform of the public service and the development of Mongolian peace keeping. If Mongolia succeeds as an engaged partner in the larger governance of the world in terms of economy, governance and human rights; well that will be good for Canada as we’ll have a better partner. We want Mongolia to succeed. If Mongolia succeeds, we succeed. He asks me, “Did you know Mongolia has more peacekeepers deployed than Canada does?”
I’m curious to know how he feels about recent requests by the Mongolian government to renegotiate the OT investment agreement – a request which is sending shockwaves through the economy. In its proposed 2013 budget, the Government of Mongolia has included revenue from the application of a “progressive royalty scheme” to Oyu Tolgoi. This of course directly contravenes what was agreed to in the original Investment Agreement between the Mongolian Government and Rio Tinto and Oyu Tolgoi LLC.
“You’re not wrong about uncertainty. Mongolia has a new government, a new ministry – even new ministries. There is a lot of uncertainty regarding what will be new policy and of course this includes economic development. Both foreign and Mongolian investors really don’t know what will happen next so there’s very much a wait and see approach being taken now. People are holding back on making investment decisions.”
Foreign direct investment has been the lifeblood of Mongolia’s economy and is responsible for much of the country’s GDP growth. Many would argue that with its desire to get more revenue from OT, the government is unknowingly causing FDI to slow down dramatically. Where Mongolia ends up, no one is certain, but Goldhawk is calm and thinks it may be wise for the leaders of the country to take a bit of a longer-term view.
“No Canadian would argue with Mongolia’s right and necessity to have a law which deals with foreign investment laws. That’s the message we want to get across. We understand and we want to share our experiences. The reality is that this relationship between our two countries is about more than mining and resources; it’s more than just about mining and money. It’s about poverty reduction, the development of bureaucratic effectiveness and legal reform and peace keeping.”
Changing pace, we now discuss what prompted his career in the Foreign Service. Goldhawk is candid and laughs, “Well, it’s not so much a job as it is a character defect. People with diplomatic careers live their lives in chunks of two to four years so we have this attention deficit problem – knowing that every few years things will completely change. We’ve all got very short attention spans!”
His eyes twinkle and he smiles, “As a child I was fascinated by foreign cultures. From an early age I always wanted to live in these places I read about. I look back and see a dreamy eyed, six year old boy under the blankets of his bed, holding a flashlight, reading travel books – even books about Chinggis, and looking at maps deciding where he wanted to explore and live. Living in America, Thailand, Greece, Australia and now in Mongolia – it really is a dream come true.”
Before accepting Canada’s top job in UB, Goldhawk was very worried about how his wife and daughter would take the news about a posting in Ulaanbaatar. “I was uncertain how my wife would respond, but to my gargantuan surprise she was even more enthusiastic than I was,” Goldhawk exclaims.
“I’ll never forget my wife and daughter glued to the window of the airplane with big smiles just before we landed in Mongolia.”
Goldhawk’s eleven year old daughter now attends an international school attended by only about 400 students. He tells me, “When we were in Thailand she was at a school with 1600 students and she hardly knew a soul. I asked her whether she preferred studying in Thailand or in Mongolia and she instantly said that studying in Mongolia is much better because she knows everybody.”
I briefly meet Ambassador Goldhawk’s gregarious wife that afternoon and learn she absolutely loves living in UB. Sharon Goldhawk is heavily involved with IWAM (The International Women’s Association of Mongolia) and produces foreign film festivals in UB for charity. So really, all three Goldhawks have taken Mongolia by storm.
“To be the Canadian Ambassador to Mongolia is just about the best job in the Canadian civil service. He candidly jokes, “I hope my colleagues back home don’t discover this secret.” I laugh at his warm and infectious humor.
“Because Mongolia is a relatively small country in terms of population, you can undertake a project and see the direct impacts. I’ve never experienced this in any other overseas posting I’ve had. You can literally watch change take place here. It’s interesting, challenging and fascinating. You really get the feeling you’re making a positive difference – this is enormously satisfying and I feel really fortunate to be here.
I thank Ambassador Goldhawk for his time with a nice bottle of Penfold’s Shiraz and he tells me apologetically, “Oh but I don’t drink. We’ll have to have you back here when we open it.” Somehow I don’t think anybody will have to twist my arm.
Q&A Time
-What are some of the similarities between Canada and Mongolia?
-Big expanses; varied, beautiful and sometimes challenging geography; weather extremes; and warm people!
-What were your first impressions of UB when you arrived in 2010?
-Small and low-rise – as compared to Bangkok, from which I was arriving – but exotic and dynamic.
-How has UB changed since your first visit?
-Almost beyond all recognition. When I stand in the hills south of Zaisan and look back toward UB, I hardly recognize my town. The “cityscape” has completely changed, with all the new and in many cases much taller buildings. The city that I felt was dynamic then – in 2010 — feels even more so now. Hmm….. not everything is better, I suppose. Traffic feels worse, and its seems I struggle more with the quality of our winter air. But on balance, things seem to be moving in the direction of steady if gradual improvement.
-What’s your advice to UB newcomers?
-I’m reluctant to portray myself as a source of “advice,” given that after almost 2-and-a-half years here I still consider myself a newcomer, and learning all the time. I guess I would say “be patient, be open” to Ulaanbaatar and Mongolia. Both places are almost certainly different from wherever it is you have come from, and it is tempting sometimes to make early and hasty comparisons. This city is evolving quickly, and in ways which will delight and dismay you, often in the same moment. Yes, there are many challenges to living here, as there are in any city, but also many hidden “gems” in terms of places and experiences that can only be discovered with time and the help of friends – and ordinary citizens of UB, who are very proud of their city and often willing to assist.
-Have you managed to learn any Mongolian?
-I’m reasonably good with languages, or so people who judge such things tell me. I would have to say however that I am not particularly proud of the progress I’ve made with the Mongolian language. It’s a difficult one, I think, even by the standard of difficult languages. Ordinarily, the degree of difficulty would be an incentive for me to learn – I enjoy that kind of challenge. Here, the problem is “time”. I find that to make any progress with any language I need at least 3 hours per week to intensive instruction – and 3 hours is very hard to find in the non-stop atmosphere of the Embassy. Promise to self: need to try harder!
-What is your favourite pastime or something you do to relax?
-I’m a great reader, although the time for leisure reading is hard to find. I also love motorcycling and sailing. Obviously, sailing is a little difficult to practice here in UB, but I’m hopeful that next summer I may be able to do some motorcycling in the countryside.
-What was the last book you read?
-I recently finished a book called “Risk: the Science and Politics of Fear” by a Toronto-based author and journalist named Dan Gardner. The book is about the how our psychology – the conflict between the “intuitive” and “cognitive” parts of our thinking — can pre-program us to make bad assessments of “risk” in a given situation. It also talks about how our assessments can be manipulated by others to provoke a response on our part. Quite a fascinating read really.
-What is the best thing about living in Mongolia?
-The constant sense that there is a new discovery to be made, just around the corner. I’m always learning something new about this place that astounds and confounds me – whether it’s some facet of Mongolian culture, business, politics, some new vista glimpsed in the countryside, some unexpected kindness offered by a complete stranger. Just when you think you might be at the beginning of understanding this country, it – or your view of it – changes in fascinating ways. I sometimes think it just might be impossible to be bored here.

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