The proposal of the Ministry of Finance, based on the decision of the Court of Mongolia, to settle liabilities of SouthGobi Sands Resources Ltd (SGS) were discussed and finalised at the cabinet meeting.
The Court of Mongolia decided to be paid MNT 35.3 billion to the state budget by SGS. Specifically, the court decided to settle MNT 15 billion to be paid in 2016, 2017 by MNT 7.5 billion respectively and agreed on the proposal to settle remaining MNT 20.3 billion by mining in Tavantolgoi deposit at lower cost with their own expense and employees. The Court of Mongolia assigned Erdenes Tavan Tolgoi JSC to establish executive agreement with the SGS.
SGS will be responsible for the all expenses related to the mining including transportation, salary, social insurance, accomodation, food, electricity and technical maintenance. Any additional costs will not be incurred by the Erdenes Tavan Tolgoi JSC.
With this decision, Mongolia will not suffer a loss and collect total liabilities imposed on SGS while operation of SGS will not be halted.
The proposal of the Ministry of Finance, based on the decision of the Court of Mongolia, to settle liabilities of SouthGobi Sands Resources Ltd (SGS) were discussed and finalised at the cabinet meeting.
The Court of Mongolia decided to be paid MNT 35.3 billion to the state budget by SGS. Specifically, the court decided to settle MNT 15 billion to be paid in 2016, 2017 by MNT 7.5 billion respectively and agreed on the proposal to settle remaining MNT 20.3 billion by mining in Tavantolgoi deposit at lower cost with their own expense and employees. The Court of Mongolia assigned Erdenes Tavan Tolgoi JSC to establish executive agreement with the SGS.
SGS will be responsible for the all expenses related to the mining including transportation, salary, social insurance, accomodation, food, electricity and technical maintenance. Any additional costs will not be incurred by the Erdenes Tavan Tolgoi JSC.
With this decision, Mongolia will not suffer a loss and collect total liabilities imposed on SGS while operation of SGS will not be halted.