It has been 3 months since the shareholders of Oyu Tolgoi LLC met for the first time to resolve the outstanding issues of the project. The shareholders representatives include Ministers of Mining, Economic Development, Environment and state owned Erdenes MGL and Erdenes OT companies. The major issue was the cost overrun of the project and other laws and regulations compliance issues. The project is operating on the interim-budget approved by the board each month. We assume that the interim-budget does not include the planned capital expenditure.
To inspect the cost overruns of the project a joint-working group has been formed between the government and Rio Tinto. The working group from the government is formed of Ministry of Mining, Ministry of Finance, Ministry of Economic Development, State Specialized Inspecting Agency (SSIA).
The inspection has been underway from last week and expected to draw a conclusion by the end of the month. The shareholders meeting will resume after the results become clear.
Oyu Tolgoi LLC reiterate that the project process is transparent and open for the shareholders. The results will show how transparent was the Oyu Tolgoi LLC to its’ shareholders.
The shareholders meeting is scheduled to be held between 22-25 of this month.