Last Friday, Prime Minister S.Batbold presented his principle of Tavan Tolgoi project implementation to the State Great Khural. MPs generally, supported his idea of splitting the deposit into two parts. In his speech to the State Great Khural, Prime Minister S.Batbold said that “ …proposal of realizing Tavan Tolgoi deposit based on the will to become developed nation and creative minded people. We included solutions to provide opportunity to distribute economic benefit evenly to public using shares and to health, education and housing….”
After the speech, Prime Minister S.Batbold answered to questions of MPs, together with his Cabinet Ministers.
MP J.Enkhbayar: I support the Government position. How to distribute share to public?
PM S.Batbold: The Government of Mongolia has position to distribute shares to its citizens even those who living abroad. The beginning of the action will be share of Tavan Tolgoi. The Government proposed the principle of Tavan Tolgoi to the State Great Khural, in order to receive general direction from SGK. Once it receives approval, it will review the feasibility study to re-evaluate the deposit. 10% of Tavan Tolgoi will be distributed to public through Human Development Fund.
MP D.Odbayar: Only one amendment proposal in the Mineral Law of Mongolia is suggested. All other necessary legal modification and due diligences are good to mine Tavan Tolgoi?
S.Bayartsogt: As for the legal side, we have three main goals: development policy, not to be affected by crisis and “Holland illness”. We presented a draft amendment in the Mineral Law of Mongolia. Also we are developing gliding royalty law. This law will regulate taxable income size during the commodity price surge. Because, starting from 2011, windfall tax will be cancelled.
MP Ts.Batbayar: It’s said that Mongolian companies are included in the operation. Is it Mongol 999 Consortium or will be open to everyone?
PM S.Batbold: There are over 30 thousand domestic companies in Mongolia. All those companies have opportunity to acquire shares from the state owned company. It will not include only those who made proposal, but to all of them.
MP S.Erdene: Do you have conflict of interest in Energy Resource Company? Why we need to cooperate with foreigners only?
PM S.Batbold: If State Great Khural wants not to split into two sections, not to involve foreign companies and not transit transport solution in the project, it can make its resolution. I don’t have conflict of interest at Energy Resource and even to Tavan Tolgoi. I reserved Tavan Tolgoi for 8 years since 1997 and returned to the Government, without digging a single shovel of coal. Shenhua and some Russian companies made proposal to buy the project. All politicians and MPs who involved in the project, sold their shares. As for myself, I can show you my tax document.