PM Altankhuyag N.: $400 million is left from the bond

May 28 • Interview, Mining, News, State Affairs • 3601 Views • No Comments on PM Altankhuyag N.: $400 million is left from the bond

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Government is organizing a weekly meeting called “Prime Minister’s 30 minutes” with journalists to report and discuss the cabinet’s weekly work. This week, issues around the mining sector was discussed.

Some companies halted their operations after Law with a Long Name (“LAW TO  PROHIBIT MINERAL EXPLORATION AND MINING OPERATIONS AT HEADWATERS OF RIVERS, PROTECTED ZONES OF WATER RESERVOIRS AND FORESTED AREAS”) was approved. There has been speculations on compensating companies affected by the law. When the issue will be resolved?

The law covers two main areas, mines located in the headwaters and those located in forested areas. The decision to close these mines was made by the previous SGK and cabinet. The law has been difficult to implement. We faced a significant amount of resistance. The companies already committed their investment in the mines asking us the rational question – what to do next? However, we are looking at the mines if the companies has really done the enough reclamation on the closed mines. The companies that halted their operations and closed their mines are meant to receive a compensation. Nonetheless, some companies are not doing enough reclamation on the closed mines.

Cabinet is reporting that Erdenes TT is exporting its coal to Chalco without a loss. What is the selling price to Chalco?

The outstanding debt to Chalco is $186 million. Borrowed $350 million was exhausted after distributing it to the public, as we all know. Erdenes TT will need to supply coal to Chalco for 5 consecutive months to finish off the debt. Profitability of Erdenes TT will be on the table after 5 months. It is a difficult task for the government because there is no income coming from Erdenes TT operations. 3.5 million coal is to be exported to Chalco within 5 months.

There are many projects that Chinggis Bond money is being invested. What control is imposed on these spending? How much is left from the bond? 

There are certain projects that is being implemented under the control and policy of the Development Bank. Additionally it needs a labour control organizations to be involved. $400 million is left from the bond.

Examination on documents is under process in Oyu Tolgoi LLC. What is the current progress of this process?

The process is progressing by Oyu Tolgoi LLC handing over the necessary documents. Were the cost overrun necessary or unnecessary raise? There are issues that our side has been slow on issuing permits etc. Two sides are talking on starting the shipment on 15th of June this year.

 

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