Independent MPs share their positions on Oyu Tolgoi deal


The council of independent Members of Parliament called a press conference on Monday to express their positions on the Oyu Tolgoi underground mine development and financing plan.
Member of Parliament Ts.Davaasuren said at the press conference, “There are plenty of things to clarify in the plan to develop the Oyu Tolgoi underground mine. For instance, provision 4.4 of the plan states that the Finance Ministry will receive Oyu Tolgoi’s 2010 to 2014 financial reports and approve them. This provision means the acceptance of exceeding the project’s budget by 2 billion USD. The Finance Minister should study this issue neatly. Mongolia’s economy is growing extremely fast at 7.8 percent annually since Oyu Tolgoi moved forward. But why is our condition deteriorating. The reason is that Oyu Tolgoi pays only five percent of its sales tax. Now it has taken another loan of 6 billion USD. Two billion USD will be devoted to the development and construction of the Oyu Tolgoi underground mine, while the investor companies will spend the remaining 4 billion USD paying their debts… Provision 5.5 of the plan states that the current debts of shareholders will be paid by the remainder of Oyu Tolgoi underground mine project financing and profits from its basic operations.
“As of today, Mongolia’s foreign debt has reached 20 billion USD. Some 6.1 billion USD of it was loans for Oyu Tolgoi. Now it has been increased by 6 billion USD. The Finance Minister must resign if this becomes acceptable and Oyu Tolgoi’s 2010 to 2014 financial reports are approved with his signature. When the project makes a sale of 100 tugriks, Mongolia has the right to take only five of it, according to the contract. We do not want the Oyu Tolgoi project stagnate. We should continue more beneficially to Mongolia,” he added.

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Posted by on May 26 2015. Filed under Politics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “Independent MPs share their positions on Oyu Tolgoi deal”

  1. outside its cold

    Won’t these career “politicians” go away already? They have no shame. There is no pleasing these people at any cost. Even if Rio Tinto told these 3 idiots here that they were going to develop the mine for free they would still find something wrong with the deal. Somebody please throw these guys out of parliament.

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