Who should be the third board member in OT LLC?

Jun 24 • Companies, Featured, Mining, Opinion, State Affairs • 9777 Views • No Comments on Who should be the third board member in OT LLC?

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Board room

Mongolian Government, through its Erdenes OT LLC, and TRQ or Turquoise Hill Resources Inc. owns the Oyu Tolgoi LLC’s 34% and 66% respectively. According to the Shareholders Agreement the government has 3, and TRQ has 9 directors in the board.

The board directors from TRQ side is quite obvious, Rio Tinto appointed corporate soldiers, except for Mr. Batsukh Galsan, who is a former Mongolian diplomat and interestingly former Ambassador to Canada from Mongolia. From the government side the appointed directors are N. Bagabandi – former President of Mongolia and P.Tsagaan – Chief of Staff of the current President. Mr. Ch. Ganbold – was the third board member until he resigned on last March. Thus, leaving one seat open.

There hasn’t been any news regarding the third director’s appointment from either OT LLC or the government. However, by logic, the most suitable person on the job by rank or as a corporate culture, it should be Ts. Sedvanchig current Executive Director of Erdenes Oyu Tolgoi LLC. He is one of the first students who graduated in Japan and to lead Gobi JSC – the largest cashmere goods company in the country. Gobi JSC was one of the only two foreign currency source for Mongolia back in the days. He also has been a parliament member. His colleagues and friends currently dominate the regulatory sector of the mining industry of Mongolia such as Mr. D. Gankhuyag – current Mining Minister, also a Japan graduate.

Another, estimation would be Mr. G. Temuulen, a Deputy Director of Erdenes MGL, the parent company of both Erdenes OT and Erdenes TT (Tavan Tolgoi). Mr. G. Temuulen is working on Oyu Tolgoi project from the beginning. He was the secretary when Investment Agreement and Shareholder’s Agreement were in negotiation. Without doubt, he has the knowledge and potential to be appointed as the third Board Member in OT LLC.

The previous balance on the board from the government was the members of both DP and MPP, then an assumed non aligned member which was Mr. Ch. Ganbold. However, the current situation dictates that all the members or at least two members will be DP member. Then, our second guess will be false, because Mr. G. Temuulen is a MPP member.

We will update our readers in due course on the matter.

 

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