Minister for Finance reports on Oyu Tolgoi agreement

Oct 25 • Energy, Mining, News • 883 Views • 1 Comment on Minister for Finance reports on Oyu Tolgoi agreement

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Yesterday, Finance Minister S.Bayartsogt informed journalists about Oyutolgoi issue on Monday.

Ivanhoe Mines Ltd and Rio Tinto International Holdings Ltd made Oyutolgoi investment agreement on October 6, 2009.

The Minister said that Mongolia would earn USD29.1 billion as taxation, payment, fee and dividend from Oyutolgoi project in 50 years and investors would earn USD25 billion as dividend. Besides, the two sides have agreed to talk loan interests in every seven years and next talks would be held in 2018. Mongolia could own 50 percent of shares after 30 years.

Bayartsogt explained that the MPs who demand implementation of the 57th protocol of Parliament have considered political meaning but not economic basis.

Some journalists asked that investors saying Mongolian politicians greedy related to politicians bribery from investors. The Minister stated that essentiality of issue concerns to benefit of Mongolian side and the International Monetary Fund and World Bank concluded that Oyutolgoi agreement has beneficial to the Government of Mongolia, after their research. Mongolia becomes a country with average income and has economic growth 20 percent.

He answered a question about double taxation with Kingdom of the Netherlands that Mongolia has held talks of double taxation with some countries since 1990. Double taxation does not give profit to Mongolia and the Government is aiming to cancel double taxation agreements.

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One Response to Minister for Finance reports on Oyu Tolgoi agreement

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