According to the Decree #40 of the SGK, the cabinet has been obliged to make an agreement on the investment deal to take the payment for exploiting mineral resources and a certain part of the excise tax in accordance with a parliamentary resolution. In respect of this, the cabinet established the investment contract in October 6, 2009 with the Rio Tinto International Holdings Ltd, Ivanhoe Mines Ltd Corporation and the Ivanhoe Mines Mongolia Inc LLC, agreeing to take the pre-payment of USD 250 million in several phases.
The first part of the pre-payment USD 100.0 million was transferred to the government in October of 2009, the second one USD 50.0 million in April of 2010. The third part equal to USD 150.0 million is given to Mongolia with an interest of 1.59 per cent in accordance with the contract on pre-payment.
A contract on transferring a final, third part of the pre-payment was signed Tuesday by S.Bayartsogt, the Minister of Finance, and by Mr. Cameron McRae, president and CEO of Oyu Tolgoi LLC. Thanks to this, money of 100 million US dollars will be passed to the Mongolian side.
The money transferred to the Government will be used to fund the human development fund. The human development fund is distributing cash to every citizen and also providing non-refundable aids for every university student. The money will also be used for infrastructure and social development.