The Parliament ratifies resolution on OT agreement
1 долоо хоног, 4 өдөр өмнө
- The resolution has eight articles on advancing agreements regarding the Oyu Tolgoi.
At the Parliamentary session, a total of 46 MPs attended the session have voted to approve the draft resolution on ensuring the interests and rights of Mongolia in the exploitation of the Oyu Tolgoi (OT) deposit. The resolution has eight articles on advancing agreements regarding the Oyu Tolgoi.
Based on the conclusion and proposals by a working group in charge of taking control on the implementation of Oyu Tolgoi Investment Agreement and other relevant contracts on the exploitation of Oyu Tolgoi deposit in the Umnugobi province, a team of Parliament members drafted the resolution, reflecting measures to improve the agreements in line with legislation of Mongolia.
The Parliament’s draft resolution is based on the working group of the Parliament in charge of analyzing the implementation of the OT agreement, reflecting actions to enhance the agreements in line with the legislation of Mongolia. The overall investment cost of the Oyu Tolgoi project is increasing from its original design; the total investment of the project has exceeded USD 11 billion.
The resolution states to the government of Mongolia to take measures to:
- study possibilities of resolving investment for 34 percent of shares owned by the Government of Mongolia through mineral production sharing agreement or royalty fees for the purpose of keeping the benefits to be gained by the Mongolian side at not less than 53 percent, as reflected in the Investment Agreement,
- formulate technical and feasibility studies on the mineral reserves of the deposits,
- renew environmental and water resources assessments,
- carry out measures to ensure the realization of the working group’s conclusion and proposals,
- and reinforce the financial and human resource capacity of the Mongolian representation in the project.
Investors of Oyu Tolgoi Turquoise Hill Resources (TRQ) and Rio Tinto have recently stated that they strongly refute any suggestion that the UDP or any of the foundational OT Agreements are illegal. Adherence to the principles of the Investment Agreement, ARSHA and the Underground Plan has allowed for the development of the Oyu Tolgoi mine in a manner that has given rise to significant long-term benefits to the people of Mongolia, it said.
Rio Tinto’s shares slumped by 1.18 percent as the Parliament passed a resolution on OT deposit in Mongolia, and the downturn continues.