The three Oyu Tolgoi Board Members who had talks with Rio Tinto on the issues and dispute over the project financing in London held a press conference today on October 1st.
The press conference was held by Ganzorig Temuulen, Deputy Director of the parent company Erdenes MGL LLC and Chuluuntseren Otgochuluu, the Director-General of the Ministry of Mining’s Department of Strategic Policy and Planning.
Ch.Otgochuluu made the following statements:
“The Mongolian Government raised 22 different points of dispute regarding the project which you are aware of as these issues were introduced to Parliament. Rio Tinto suggested eight issues in return. Rio Tinto and ourselves as representatives of the Government of Mongolia have agreed on 15 of the 30 presented issues over the massive Oyu Tolgoi project with Rio Tinto. So we have reduced the problems by half.
The Media reported that the Oyu Tolgoi group of deposits are owned by a third party.
Representatives of Rio Tinto and the Mongolian Government discussed and agreed to transfer the special licenses of the Oyu Tolgoi group of deposits to Oyu Tolgoi LLC and let the Mongolian Government hold 34 percent of the total licensed area.”
“The Ministry of Mining of Mongolia suggested to transfer two special licenses that Entrée holds to Oyu Tolgoi LLC in accordance with the Oyu Tolgoi Investment Agreement. The Parties also negotiated the issue and agreed to take urgent measures. Therefore the dividends for Mongolia will increase up to 1.4 billion US dollars within the project period.”
But there are still three challenging issues. The project cost overruns, the authorized registering of the feasibility study and the Oyu Tolgoi group of deposits and project extension cost details. Both parties are to review the project cost overruns as the Mongolian Government and Rio Tinto have held and audit of Oyu Tolgoi discover the reason. Parties will negotiate again when both auditing results have been released on October 10th.
Board member Temuulen said that the talks with Rio Tinto were successful. Both parties made efforts to find a resolution. The parties will continue talks in Ulaanbaatar on October 10th.
SOURCE OF THIS ARTICLE : News.mn
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