MPs disagrees over Oyu Tolgoi Investment Agreement

During the final discussion of the draft program of the Government between 2012 – 2016 at the General Session of State Great Khural, MPs were in intense disagreement over the review of Investment Agreement of Oyu Tolgoi.
MP Kh.Bolorchuluun said that “… recently 25 MPs signed on the petition of amending the Investment Agreement on Oyu Tolgoi and many more will join it. MPs didn’t hold press conference because of politically misleading outcome. Oyu Tolgoi is four times bigger project than Erdenet, but its ineffective agreement was proven by the research of SGK and patriotic scholars, also. Some examples are royalty fee of 5%, but the investing side will get 6% of management fee from the sales income. Moreover, investor will not pay VAT and export tax. At the end Mongolia will buy its 34% with related interests. 7 types of taxes were frozen for 30 years and Mongolia will get its additional 16% only after 31 years. At that time Oyu Tolgoi will be just like Boroo Gold, exhausted with its best part of deposit. Therefore, I am for the amendment of the agreement…”
MP S.Byambatsogt commented that “… Mongolians will be in debt of US$6 billion after 30 years. Therefore, the resolution 57 was made to improve it”
Some MPs, mostly from the previous parliament answered the following way:
MP A.Bakey (Chairman of the Standing Committee of State Structure): 2/3 of MPs shall vote for the amendment. But none of them made such proposal.
MP S.Bayartsogt, Deputy Speaker of the SGK: New MPs haven’t well informed with the situation and “elder” MPs misinterpreting the situation with purpose. It shouldn’t be discussed and considered as you explained.
MP Ch.Saikhanbileg, Chairman of the Cabinet Secretariat and Minister: We shall announce debate over the Oyu Tolgoi agreement, otherwise we shouldn’t argue about its effectiveness at the parliament.
Prime Minister N.Altankhuyag said that “… we are representatives of 2.8 million Mongolians who love their homeland. It is obvious that there are some issue, need to be reviewed, over the agreement. As mentioned by MP Ch.Saikhanbileg, we shall announce open debate and discussion about this issue, otherwise, such example of splitting each other into patriotic and non-patriotic. The Government oversees this issue as follows, not naming any deposit or project, but all investment and stability agreement on not only mining projects, but other sectors such as energy and product share agreements…”
MP B.Bat-Erdene, who has been against the agreement all the time since its discussion and made petition for the dismissal of Minister for Mineral Resources, said that “… you should not approach this issue that easy way. It is the issue related with the faith of all Mongolians. We should state the amendment of Oyu Tolgoi agreement in the program…” and he sat next to the speech platform of SGK, showing his protest over the result. MP Kh.Bolorchuluun and S.Ganbaatar took him out of the hall.
Shortly after the session ended, MP B.Bat-Erdene, S.Byambatsogt, D.Battsogt, S.Ganbaatar, Kh.Bolorchuluun made announcement to hold press conference at 12.00 on Wednesday, September 19, 2012, in “G” Hall of the State Palace. The topic is obviously the amendment of Oyu Tolgoi Investment Agreement.


Leave a Reply