The Mongolian People’s Party faction in the Parliament holds a meeting. L.Oyun-Erdene, Prime Minister of Mongolia, made a report.
Rio Tinto and Turquoise Hill have sent a letter with five recommendations to the Prime Minister.
At first, a loan of USD 2.4 billion for 34 percent of the Oyu Tolgoi project is 100 percent written off. Therefore, it will not create the previously estimated debt of USD 22 billion. Basically, the Mongolian citizens will get 34 percent for free.
Secondly, the financing plan for the underground mine is terminated on the date of this letter.
At third, the government of Mongolia is able to conduct an external audit for the expense of Oyu tolgoi underground development funding, and payment will be made if it is inconsistent.
Fourth, the underground mine is expected to be operational in the first half of 2023. Until then, the investor will be 100% responsible.
Fifth, they expressed their cooperation in the field of environment and energy. The Parliament Resolution No.92 has been implemented. If the issue of putting the underground mine into operation is resolved at the working group level, they are ready to start construction work in the first quarter of 2022.
Ts.Davaasuren, Member of Parliament:
- We have been arguing over Oyu Tolgoi for many years. The most important thing is that the Parliament, the Temporary Committee and the Government were on one side. In the past, the government threw stones at us on the other side. Thank you for your commitment to the government.
Politics and business groups and some members of our party were involved and it was a complicated issue. It required political courage. Our country has zeroed the 34%.
Secondly, the Dubai agreement has been terminated. We will conduct an external audit to see if the loan has been transferred or it was necessary.
Third, the investor will decide on additional financing until the underground mine is into operation.
B.Solongoo, Deputy Minister of Justice and Internal Affairs:
- Negotiations are ongoing. On October 21, Rio Tinto sent an official letter to Kh.Nyambaatar, the Minister of Justice and Internal Affairs. At the time, the proposal was to cancel 70 percent of the debt to 34 percent debt, or USD 1.6 billion. In November, we demanded to zero the debt 100 percent. Our proposal is accepted.
But the negotiation will continue. Issues such as groundwater use and environmental impact in the Gobi region will be discussed. We will also discuss development of underground mine, termination of the Dubai Agreement, and amendments to investors’ agreement.
B.Bat-Erdene, Member of Parliament:
- We faced very big issue losing the world's third-largest wealth to foreigners and ending up with USD 22 billion debt. People know who put us in this situation. It has been talked since 2008. Our power was weak that time. Civil movements and citizens raised this issue at the central square and the Parliament passed Resolution No. 57 which contains a principled provision to increase the Mongolian shareholding to be at least 50 percent.
Recently, at the request of the Prime Minister, Jakob Stausholm, CEO of Rio Tinto, arrived with all directors and held meeting. "We are in this situation today because this agreement started in the wrong way from the beginning. We understand that. If it had been done right from the beginning, we would not have encountered such a situation. Today, we will accept any harsh words you say." said the CEO.
Today, the results were made when the citizens, the Speaker of the Parliament, the President, the Government and the Parliament have a common understanding. The USD 2.4 billion debt which is 34 percent, is about to be written off. The Dubai Agreement, which we have talked about this for many years, is about to be terminated. We have been fighting for this since 2008.
The Mongolian People’s Party faction in the Parliament holds a meeting. L.Oyun-Erdene, Prime Minister of Mongolia, made a report.
Rio Tinto and Turquoise Hill have sent a letter with five recommendations to the Prime Minister.
At first, a loan of USD 2.4 billion for 34 percent of the Oyu Tolgoi project is 100 percent written off. Therefore, it will not create the previously estimated debt of USD 22 billion. Basically, the Mongolian citizens will get 34 percent for free.
Secondly, the financing plan for the underground mine is terminated on the date of this letter.
At third, the government of Mongolia is able to conduct an external audit for the expense of Oyu tolgoi underground development funding, and payment will be made if it is inconsistent.
Fourth, the underground mine is expected to be operational in the first half of 2023. Until then, the investor will be 100% responsible.
Fifth, they expressed their cooperation in the field of environment and energy. The Parliament Resolution No.92 has been implemented. If the issue of putting the underground mine into operation is resolved at the working group level, they are ready to start construction work in the first quarter of 2022.
Ts.Davaasuren, Member of Parliament:
- We have been arguing over Oyu Tolgoi for many years. The most important thing is that the Parliament, the Temporary Committee and the Government were on one side. In the past, the government threw stones at us on the other side. Thank you for your commitment to the government.
Politics and business groups and some members of our party were involved and it was a complicated issue. It required political courage. Our country has zeroed the 34%.
Secondly, the Dubai agreement has been terminated. We will conduct an external audit to see if the loan has been transferred or it was necessary.
Third, the investor will decide on additional financing until the underground mine is into operation.
B.Solongoo, Deputy Minister of Justice and Internal Affairs:
- Negotiations are ongoing. On October 21, Rio Tinto sent an official letter to Kh.Nyambaatar, the Minister of Justice and Internal Affairs. At the time, the proposal was to cancel 70 percent of the debt to 34 percent debt, or USD 1.6 billion. In November, we demanded to zero the debt 100 percent. Our proposal is accepted.
But the negotiation will continue. Issues such as groundwater use and environmental impact in the Gobi region will be discussed. We will also discuss development of underground mine, termination of the Dubai Agreement, and amendments to investors’ agreement.
B.Bat-Erdene, Member of Parliament:
- We faced very big issue losing the world's third-largest wealth to foreigners and ending up with USD 22 billion debt. People know who put us in this situation. It has been talked since 2008. Our power was weak that time. Civil movements and citizens raised this issue at the central square and the Parliament passed Resolution No. 57 which contains a principled provision to increase the Mongolian shareholding to be at least 50 percent.
Recently, at the request of the Prime Minister, Jakob Stausholm, CEO of Rio Tinto, arrived with all directors and held meeting. "We are in this situation today because this agreement started in the wrong way from the beginning. We understand that. If it had been done right from the beginning, we would not have encountered such a situation. Today, we will accept any harsh words you say." said the CEO.
Today, the results were made when the citizens, the Speaker of the Parliament, the President, the Government and the Parliament have a common understanding. The USD 2.4 billion debt which is 34 percent, is about to be written off. The Dubai Agreement, which we have talked about this for many years, is about to be terminated. We have been fighting for this since 2008.