ULAANBAATAR, April 5 (Reuters) - A group of Mongolian legislators has recommended one of the agreements underpinning Rio Tinto’s Oyu Tolgoi copper mine should be scrapped and another changed, adding to the giant project’s political problems.

The Gobi desert copper deposit promises to become one of Rio Tinto’s most lucrative properties, but it has been subject to repeated challenges from politicians who argue the spoils of the country’s mining boom are not being evenly shared.

It has also been at the centre of an anti-corruption investigation that has seen the arrest of two former prime ministers and a former finance minister.

The original 2009 Oyu Tolgoi Investment Agreement granted 34 percent of the project to the Mongolian government and 66 percent to Canada’s Ivanhoe Mines, now known as Turquoise Hill Resources and majority-owned by Rio Tinto.

Nationalist politicians have repeatedly called for the deal to be adjusted in Mongolia’s favour.

Terbishdagva Dendev, head of a parliamentary working group set up last year to review the implementation of the Oyu Tolgoi agreements, told reporters this week the group had concluded the original 2009 deal should be revised.

A 2015 deal known as the Dubai Agreement, which kickstarted the underground extension of the project after a two-year delay, should also be scrapped entirely, he said.

“Of course there will be international and local pressure, though if we do have rule of law ... the agreements should be amended for good,” he said in a separate television interview.

Rio Tinto did not immediately comment on the issue when contacted by Reuters.

A lawyer involved in Mongolian mining deals speaking on condition of anonymity said opponents of the original agreement argue the Dubai Agreement made changes to the 2009 deal and should therefore have been subject to full parliamentary approval. Instead it was just approved by the prime minister.

The 200-page review has been submitted to Mongolia’s National Security Council as well as a parliamentary standing committee on economic matters. It is unclear when or if its recommendations will be implemented.

“It will be very hard to terminate the underground mine plan, since it must be done by mutual agreement,” said Otgochuluu Chuluuntseren, advisor at Mongolia’s Economic Policy and Competitive Research Center and a former government official.

“Also foreign investors who were participating in the project finance might intervene in the process to protect their interests,” he told Reuters, adding that it could also damage investor sentiment for years.

The flagship Oyu Tolgoi project helped spur a mining boom that drove economic growth up to double digits from 2011-2013, but a rapid collapse in foreign investment and falling commodity prices saw Mongolia plunge into an economic crisis in 2016.

Mongolia was also embroiled in a row with Rio Tinto over tax and project budget issues that saw Oyu Tolgoi’s expansion put on hold. A series of other disputes with foreign miners also weakened investor sentiment. (Reporting by Munkhchimeg Davaasharav; additional reporting by Barbara Lewis in London; editing by David Stanway and Richard Pullin)

Mongolia is the unique country in its geographical location linking China and Russia, which led to the creation of the China-Mongolia-Russia Economic Corridor in June 2016. The relationship between the Chinese and Mongolian economies is reciprocal. In Chinese politics, Mongolia is a necessary and indispensable neighbour, because it is the vital path China takes to reach its economic partners.

China-Mongolia-Russia Economic Corridor will bring benefit to all. It is a key part of the belt and road initiative. This corridor has a vital role to play in advancing the belt and road initiative. The Mongolian economy depends heavily on China’s investment in the country.

In 2017, the export and import movement in the two largest ports in the Inner Mongolia Autonomous Region in northern China witnessed a new rise.

In Ernhot, the largest rail port between the two countries, rail trade increased by 16 percent year-on-year to 11.2 million tons in 2017. In the same year, 570 trips were made on the China-Europe railways passing through Ernhot.

The goal of the belt and road initiative is mutual profit and China is certainly the first winner, but Mongolia will share this profit with China as well. The geographical location, import, and export between the two countries, and the relations between the two peoples are all factors that make Mongolia gain in this huge economic process.

The Mongolian people are horse-loving people, a country known for its large number of horses. Mongols without horses are like birds without wings. Despite the industrial and political revolution in the world, and despite the great economic growth witnessed by the Chinese neighbour, this did not affect the Mongolian culture.

The cold weather did not affect the way pastoralists lived by raising horses, camels, goats, livestock and sheep in order to obtain milk, meat, and other livestock products.

The reading of Mongolian history indicates that this country has passed through periods of prosperity and has been an example of power and governance. The very cold weather indicates that the Mongolian people are adhering to their homeland despite difficult weather conditions and despite the threats of natural factors.

This geopolitically large country with a small population is an important space in international relations, especially with the growing role of China and Russia, which will certainly strengthen the strategic position of this country.

The Mongolian economy is heavily dependent on livestock, and its number has increased considerably since the Soviet era because of the transfer of ownership to the people, but these large numbers cannot be borne by the state.

“The government has failed to promote education and health care and veterinary care in pastoral communities, so there is no longer any incentive to stay in rural areas,” said Sarol Khuadu, an official at the Institute for Environmental Research in Mongolian capital. The policy, which no longer places much emphasis on the countryside, has led to the transfer of large numbers of citizens to the capital and to engage in the world of money and business.

Unfortunately, the Mongolian government is not working seriously to help the rural population. The loans granted to them are of high interest and bad living conditions, in addition to the weather that adversely affects their businesses.

In order to assist the poor and the rural population and in collaboration with national governments and humanitarian, development and scientific partners, FAO has developed an early warning approach by monitoring risk information systems and turning warnings into proactive actions.

Mongolia’s strategic policy through the steppe program is largely in line with the belt and road initiative, which is a road linking Mongolia with China and Russia, and so Mongolia, the country known for its livestock breeding and geographical location are restoring its main role to link countries and strengthen economic ties through exchanges.

The steppe road aims to boost Mongolia’s economic standing and rail links with Russia and China and build an oil and gas pipeline. In 2014, during his historic visit, Chinese President Xi Jinping also raised the level of relations between the two countries to “comprehensive strategic partnership relations”. Since then, bilateral cooperation has begun to move faster.

China has never abandoned Mongolia; it is a country of great geographical value, the link between Asia and Europe, in addition to the important agricultural sector in Mongolia which benefits China, and the China-Mongolia-Russia Economic Corridor, which has become an important part of the belt and road initiative.

The relationship between China and Mongolia today is an example of the relationship between two neighbouring countries. Economic, cultural and tourism exchanges are important and increasing with time and the belt and road initiative has been established to promote this relationship.

China is investing in some Mongolian border ports, and China is also determined to conduct a joint economic feasibility study on the Sino-Mongolian Free Trade Area.

The International Surfing Association (ISA) today has welcomed the Oman Surfing Association and the Mongolian Surfing Federation as new Member Nations, bringing the International Federation’s total membership to 106 nations across all five continents.

The addition of Oman and Mongolia highlights the ISA’s continued strategy to grow the sport of Surfing in all its disciplines across non-traditional surfing regions – and particularly in Asia ahead of the sport’s historic debut at the Olympic Games Tokyo 2020. Earlier this month, Surfing was confirmed on the sports programme for the 2020 Asian Beach Games, in Sanya, China, further evidence of the success of this growth strategy.

The Oman Surfing Association has made big steps in the development of Surfing in the country, holding its first ever surf contest in August 2018. The association has established goals to further grow the sport, including gaining recognition from the ministry of sport, creating a membership programme for Omani surfers, promoting the country as a surfing destination, and addressing environmental issues surrounding the country’s coastline.

While Mongolia does not have access to the sea, ISA membership will create a platform to cater to disciplines that can be practiced on flat water, such as StandUp Paddle, or indoors with wave pool technology. With recognition from the Mongolian National Olympic Committee and ISA membership approval, the Mongolian Surfing Federation aims to now organize indoor surfing competitions, set up a network of surfing clubs throughout the country, collaborate with other ISA Member Nations in Asia, encourage instructors to obtain ISA instructor certification, and promote the sport on a national level through a media campaign.

ISA President Fernando Aguerre said:

“We are excited to welcome Oman and Mongolia to the ISA family to help them develop the sport and achieve their goals on a national level.

“The growth of surfing in non-traditional surfing nations is testimony to how surfing’s Olympic inclusion has expanded the sport to new corners of the globe. Surfers that thought the Games were far out of reach, now have a tangible dream that they can pursue.

“The beauty of surfing is that it does not discriminate on class, race, or creed. In the water we are all equal, and surfers from all 106 of our member nations have an equal opportunity to enjoy the ocean and water.”

Oman Surfing Association President Nasser al Ghadani said:

“Surfing is steadily developing in Oman. We hope to gain momentum and generate funds to donate more surfboards to the Omani youth and coach them on how to ride waves.

“We have a vision to educate Omanis and visiting foreigners about our sport, which we will accomplish by holding our second competition this year, registering with the local Ministry of Sport, and encouraging others to become ISA certified like myself. Eventually we hope to field an Olympic team of Omani surfers. That would be the ultimate goal!

“Becoming an ISA member will help us to organize the sport better and safer in Oman and make Surfing more accessible to those who want to learn in our country, particularly for the youth.”

Mongolia Surfing Federation President Tamir Amarbayasgalan said:

“Joining the ISA is a crucial step towards promoting and popularizing the sport of Surfing in Mongolia.

“This creates an opportunity for us to field a national team to compete at the ISA’s international competitions.

“The MSF has created a platform that will allow surfers to get information and become a part of the worldwide surfing community.”