MPRP group prefer to discuss the draft investment agreement on Oyu Tolgoi during the spring session of SGK (State Great Khural)
Mr. D.Lundeejantsan, the Chairman of MPRP group informed that MPRP group agrees to discuss the draft investment agreement on OT, but it needs some more modification before doing so. Deputy chairman G.Zandanshatar said that this draft needs urgent approval, but it is needed to be postponed until the spring session of the State Great Khural in order to make some clarifications and modifications.
They mentioned that MPRP is expecting its exploitation and investment agreement to be the main resource of fulfilling its election promise of 1.5 million MNT.
MPRP thinks that the draft agreement is not clear in the sense of its feasibility study, reserve estimation and benefit to Mongolia. It also believes that there must be an aggregate between the benefit to the Mongolian economy and the decreased income due to the waived windfall tax and VAT.
MPs also see that the clause “… investors will schedule its project implementation procedure and in doing so it will inform to the Minister for Mineral Resource and Energy…” of the draft limits the right of the Mongolian side investors.
The last but not the least hesitation is that MPs of MPRP are in doubt towards the power of Ivanhoe Mines Inc if it can represent the main investing body. According to the international agreement, English version dominates. Therefore, MPRP suggests revising its translation from grammar standpoint and considers better translation version.
According to the Chairman D.Lundeejantsan, MPs are not well satisfied with the pre-payment of 125 million US$, they made proposal to raise it up to US$500-1.000 million.
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