Deal With Energy Resources Is Negotiated
A task group, formed by the Government of Mongolia to negotiate and deal with Energy Resources LLC, owner of special permission of Tavantolgoi deposit, on December 2007, held nine negotiations with the Company. As a result of the negation the parties reached on a consensus to transfer Tavantolgoi deposit to state as follows:
1. 2037 hectare with special permission /license/ No.11943M named Tavantolgoi
2. 5603 hectare with special permission /license/ No.11956M named Tavantolgoi
3. 24532 hectare with special permission /license/ No.11955M named Shar teeg
4. 12890 hectare with special permission /license/ No.11953M named Bor tolgoi
5. 23461 hectare with special permission /license/ No.11954M named Bor teeg
Intersections of corner points of 2959 hectare land with special permission /license/ No.11952M named Ukhaa Khudag, which is owned possessed by Energy resources, were newly determined and it is to remain in the Company. As a consequence of this deal, a total of 68352 hectare land is transferred to state. Ukhaa khudag, a renewed site which will be possessed by the Company, takes up 4 percent of overall site. In other words, 93.6 percent of resource of power and cocking coal in the site possessed by the Company has been transferred to state.
Moreover, Energy Resources Company is obliged not to demand the state to pay back the invested funds to the licensed sites transferred to the state. In addition it was incorporated in the agreement draft that Energy resource LLC would be the first one to which the state would offer in case the state co-possess the licensed sites with private sector representative or its shareholding body of Mongolia.
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