Mongolian Mining Minister to Meet the Australian Minister

May 6 • Mining, News, State Affairs • 5476 Views • 1 Comment on Mongolian Mining Minister to Meet the Australian Minister

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Mining Minister and MP Mr. Gankhuyag D. is set to meet the Australian Resources and Energy Minister Mr. Gary Gary this month. The two ministries established a working group on each side to exchange experiences and level up the cooperation. There are many lessons to be learnt for the Mongolians from the other side.

The visit to Australia is happening amid the dispute between Anglo-Australian giant Rio Tinto and the Mongolian government on Oyu Tolgoi project. The two sides have failed to resolve the cost overruns and other significant issues consecutively.  Rio Tinto is accused of not following the agreement and failing to explain its cost overruns to the Ministry. Mongolian government is being blamed through the international media for dishonoring the agreement and failing to understand the benefit and profit it is receiving and long-term advantages.

There might be an effort from the Australian government to ease the tension as Rio Tinto is its one of the biggest contributor in the mining sector. The former Australian Minister of Resources and Energy had tried to visit Mongolia twice. Initially, the Minister waited for the plane in Incheon, then flew back. Second time, the Minister had to cancel the trip for domestic reasons.

All the parties hoping for a productive visit and extended cooperation.

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One Response to Mongolian Mining Minister to Meet the Australian Minister

  1. mar says:

    The biggest problem here is the government of Mongolia as they keep trying to change the rules and look for any excuse to complain about the Investment agreement. The cost overruns on the project were actually about 300 million US dollars – and this si based on documents filed with the US securities commission not some number a Mongolian politician invented. Even if the project never made a single dollar on the metals it sells, there would still be huge benefits for Mongolia in jobs, taxes, fee’s, infrastructure development and contracts to Mongolian companies. 71% of proceeds go to Mongolia – still the government of Mongolia complains!!!!!

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