Oyu Tolgoi Feasibility Study is accepted with some editions

Mar 26 • Laws, Mining, Politics, State Affairs • 902 Views • No Comments on Oyu Tolgoi Feasibility Study is accepted with some editions

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It said that now Oyu Tolgoi IA is accepted and to be implemented. Investors almost met with ten requirements since signing the Investment Agreement. The Feasibility Study, fiercely attacked by some MPs and civil movements, was accepted by the Professional Committee on Mineral Wealth. Investors made notable compromise, because of deadline of the agreement. It accepted to include 2% royalty payment (roughly $2 billion) for BHP Billiton in the Feasibility Study. Oyu Tolgoi LLC made detailed explanation on the four reasons of rejection made by the Committee.

Oyu Tolgoi will operate within the capacity of the registered water reserve of Water Authority and it will expand its production after completing additional research on water. It means Oyu Tolgoi will conduct additional research on water even it has reserve of processing 150 thousand tons of ore per day. Its mine life will be 79 years if process 100 thousand tons per day or 65 years if process 150 thousand tons per day.

It also changed the plan of mining 25 million tons of 45 million tons of copper, adding another 5.7 million tons from 19 million tons of copper that is considered and evaluated not minable. As the result, investors agreed to mine 31.1 million tons of copper. It was accepted by the Committee by issuing direction of 12 points for Oyu Tolgoi LLC. The closed meeting of the Committee continued for five hours with over 10 representatives from civil movements.

However, representatives of civil movements and some MPs are not well satisfied with the Feasibility Study. MP E.Munkh-Ochir sent letter to postpone the meeting, reasoning that the working group was established on examining the outcome of the Professional Committee on Mineral and Wealth. He said additional information is required to complete examination and thinks that Committee should not summon meeting without findings of the working group, established by the Standing Committee on Security and Foreign Policy.

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