Mongolian government is keen to put orders and numbers to issues. We have been informed that there are 15 outstanding issues and 9 of them were resolved during the latest OT LLC Board Meeting this month. Here is a list of 6 outstanding issues to be solved in the future in the shareholders’ level:
– The long hanging 2% royalty payable to Turquoise Hill Resources Inc. – this is the BHP related royalty which the Ivanhoe Mines LLC now OT LLC bought back from BHP back in 2003 and still exists till today and the collecting entity is Turquoise Hill Resources Inc. as a result of failing to create new company from the beginning when OT Investment Agreement was in discussion.
– The working groups from the government and OT LLC hasn’t yet agreed on the exact amount of cost overrun from the initial investment.
– Again, this year, OT LLC is having trouble with preparing its Financial Statement approved by the Finance Ministry.
– Entree Gold Inc. related costs have been charged to the OT LLC and the Mongolian government is disagrees with it. The issue is to be resolved.
– 2013 Feasibility Study update is also under scrutiny by the Mongolian authorities questioning its credibility.
– Enforcing Minerals Law which will enable Mongolia collect 5% royalty from net sales.