The dispute between Rio Tinto and Mongolian Government is still ongoing. As the Mining Mininster D.Gankhuyag today made a public statement on the delay of OT shipment commencement that has been delayed twice this month.
International news sources cited that a OT LLC and Rio Tinto spokesperson told them that it was a government request. Some blamed it on the presidential election, a special request from Ts.Elbegdorj.
The Mining Minister told the press that:
OT LLC is spreading news on local and foreign media that the delay was a request from the government. However, I would like to clarify officially that the government is not causing the delay, but OT LLC itself has everything to do with it. The delay caused due to OT LLC management is didn’t seek approval from its’ board on Sales Agreements and Contracts. The overall contract is about USD8 billion. The Company Law requires that Significant Agreements must be approved by the board, citing clause 88.1.
OT LLC is avoiding the disclosure of these Sales Agreements from Mongolian board members. Secondly, OT LLC is putting the sales income into offshore accounts. We asked them if they are not going to show us the agreements, OT LLC must process its transactions through Mongolia-based banks.
No one is winning from the delay. The shipment must commence serving the best interest of both sides. Despite the international standards that OT LLC follow, it also has to obey the local law, we hope that OT LLC will honor government’s position on this. On the other hand, there aren’t any specific clause regarding the sales and sales income.