MP Kh.Badamsuren, chairman of the working group on amendment of the Mineral Law of Mongolia: Oyu Tolgoi draft agreement negotiation procedure is accelerating.

Jun 24 • Government, Mining • 585 Views • 3 Comments on MP Kh.Badamsuren, chairman of the working group on amendment of the Mineral Law of Mongolia: Oyu Tolgoi draft agreement negotiation procedure is accelerating.

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Not much improvement has shown at the spring session of State Great Khural on adopting draft agreement on Oyu Tolgoi investment. The current update is made by MP Kh.Badamsuren.

Q: Can you update us on Oyu Tolgoi investment agreement?

MP Kh.Badamsuren: Working groups of the Standing Committee of State Great Khural prepared its comments and findings and handed to the Government. The Government will discuss it with the investing side. I think both sides are negotiating on it. You can understand that the negotiation making is accelerating.

Q: There was news about the response of “Ivanhoe Mines”. If the deal making is lagging, it might take us until the end of September. Is it true?

MP Kh.Badamsuren: Investors made their response. Related officials are making negotiation with the Government of Mongolia. It must be win win deal. Official response is one thing. Right now, officials are working on to reach the common consent. Therefore, I believe that there is a progress in deal making. I hope that the Government will present its deal making result to the working groups. Then much more will be clear.

Q: Is there many issues that causes disagreement?

MP Kh.Badamsuren: Parties don’t agree on the state ownership issue. Both sides are paying attention on profit making from the factory and company will be established on the project. Obviously, the Mongolian side will seek to impose income tax, royalty and other related payments. Also the dividend issue will be raised, if Mongolia owns certain ownership in the company. Basically, we are expecting the result from the negotiations between investors and the Government.

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3 Responses to MP Kh.Badamsuren, chairman of the working group on amendment of the Mineral Law of Mongolia: Oyu Tolgoi draft agreement negotiation procedure is accelerating.

  1. Barry says:

    Kh. Badamsuren speaks of “the Government as if they are some great unknown thing. who are these persons that are representing “the Government”, they do have names I assume.
    Who are the persons in these working groups, do they have names, or are they annonymous. He did NOT answer the questions asked of him.
    Typical. Some 20 points in the IA were still being negotiated, Kh. Badamsuren mentions one.
    Time is running out to get an IA signed before recess of SGK.
    If not done in this session, two more years of delays is very possible. None of the analysts following the negotiations believes that an IA will be done in the next 2 to 3 years. That may give IVN / RTP time to find a buyer for OT, Russians have been making sounds like they would really like to own this property.
    If IVN cannot make a deal with Mongolians that will allow them to make a reasonable profit for their shareholders, they might as well sell and invest the money in a country that is more reasonble towards outside investment.
    Mongolians representaives speak of transparency, yet they talk in opaqueness.
    How is the court case the Russians have filed in the World Court in Frankfurt, Germany over excess taxation? “B”

  2. Mongol says:

    Today’s Standard of Investment Agreement is not fear. Why all other countries except Mongol do accept Rio, BHP… etc proposals? It’s monopoly system.

  3. Barry says:

    Negotiatins proceding,,,,,,NO.
    MPs cannot agree on anything. The votes of the MPs should be publicized so that voters and others might know who it is that is stopping the economy of Mongolia from improving.
    Spring session of the SGK is only a few days away, and MPs have more changes to the Oyu Tolgoi agreement.The economy in Mongolia is going to get worse rather than better. As comodity prices fall.
    Export shipments will decrease as Mongolia prices will not be competitive to AUS, IND and other countries.
    I suggest voters contact their MPs and ask what is going on.
    Time is MONEY. “B”

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