The OT puzzle

Mar 22 • Mining, News • 617 Views • 2 Comments on The OT puzzle

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Even though the OT agreement was signed on October 2009 the project Feasibility Study is still unconfirmed yet. During the signing of the agreement the reserve rate was of 45Mt but apparently the 19Mt of it turned out to be “useless”. Another matter is the unattended social welfare of the Mongolian employees working at the mine site with the recent food poisoning incident. In addition to these the mine hydrology report is improper with fact that the mine will drain the Gobi groundwater reserves within 5-6 years of time. 5 months ago three Mongolian Ministers had signed the contract and received $100 million from Ivanhoe Mines and publicly announced it with an “excessive delight”. However the project Feasibility Study is still a mess after long awaited 5 months. Thus an open discussion will be held on this matter.

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2 Responses to The OT puzzle

  1. north of 48 says:

    D.Zorigt: Politicization of Oyutolgoi, Tavantolgoi must stop now
    Өнөөдөр 8 цаг 36 минут
    MP D.Zorigt, Minister for Minerals and Energy, answers questions on Oyutolgoi and Tavantolgoi.

    How is the Oyutolgoi contract going on?

    It has begun to be implemented and will take full effect by April 6.

    What do you think about the reservations of the Professional Mineral Council about sections of the feasibility study?

    I believe the company has accepted most of the demands of the Council. The investors have given fresh figures for the mine’s exploitable capacity and have agreed to leave Mongolia out of paying the 2% royalty fees to BHP Billiton. They have also accepted the council’s requirement to increase the factory output after five years by improving the water reserve. Some energy and infrastructure issues are still unresolved but they are not very important.

    How has the matter of how much will be extracted been resolved?

    The council wanted more exploration of the 19 million tons left out in the investors’ feasibility study. This can be done by revising the feasibility study. Something like this happened at Erdenet, too. At the start of operations there, Erdenet was said to have a reserve of 4 million tons which was gradually raised to 16 million tons. I don’t understand why people are claiming that the company deliberately calculated the reserve as lower than actual. There are people saying that the 19 million tons were being thrown away. The Council just asked for additional exploration, that’s all.

    So is the issue being politicized again?

    Politicians are politicians and will see things through their political prism. In matters such as the present one, it is better to let professional people do their job without interference. The Mineral Council consists of professionals and so they could make a professional study of the reserve. They raised question and have received clarification. There is no need to twist issues to gain political mileage. I wonder if those politicizing things really want the project to go ahead or not. Even after all the professional work, and after approval by Parliament, it seems some are still keen to stop the project at all costs. I don’t think that would serve the country’s interests. What need is there to politicize Oyutolgoi and Tavantolgoi, issues that are connected to the nation’s development and future?

    Are you saying that there must not be any criticism from the political stand?

    Politicians have had long to make their views known. Parliament has approved the agreement and it has been signed. Now only the technical work is left. The Mineral Council is working in a purely professional capacity. Why do politicians poke their nose there now?

  2. ed stanton says:

    do international companies invest there?
    i was under the impresssion mongolia did not want foreigners investing there…did something change?

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