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MP O.Sodbileg: Oyu Tolgoi deal in Dubai is not valid in arbitration court

By E.OYUNDARI

Member of Parliament O.Sodbileg held a press conference yesterday to express his position on the Oyu Tolgoi underground mine development and financing plan signed during Prime Minister Ch.Saikhanbileg’s working visit to the United Arab Emirates.
At the press conference, he stated that the Oyu Tolgoi underground mine development and financing plan is invalid. He said that the deal cannot become a document that will end a dispute in any domestic or international court. According to a memorandum from the National Security Council written on May 9, 2009, “Any issues that will be followed after the establishment of the Oyu Tolgoi agreement must be introduced to the National Security Council of Mongolia.” Parliamentary resolution No. 40 issued in 2007 states, “The work to develop draft investment agreements and investment talks should be transparent, and such actions must be reported to the Parliamentary Economic Standing Committee.”
O.Sodbileg said, “The Oyu Tolgoi deal signed in Dubai is not a contract, it is a plan. Therefore, in case of a dispute it can’t play the role of a valid document in an international arbitration court. The Government of Mongolia held several discussions at different levels before signing the Oyu Tolgoi deal. Parliament issued a resolution. The National Security Council issued security guidance. All ministries delivered suggestions and made proposals. Three ministers signed the plan in accordance with a parliamentary resolution. But when signing the Oyu Tolgoi development and financing plan in Dubai, the Premier did not go through the above mentioned steps, did not discuss it, nor get support. Therefore, we should understand that it is not agreement, but a plan. Inevitably, it is not a contract that should be followed.
“Not all the people who attended the first investment agreement of shareholders attended this deal. The representative of Ivanhoe Mines signed the investment agreement. However, Ivanhoe Mines did not attend the Oyu Tolgoi underground mine development and financing plan meeting.
“The Prime Minister’s message after signing the deal gives misleading information to the public. Because people think that the investment in the Oyu Tolgoi underground mine has been resolved. If it was resolved, this should be a contract. The counterparts must adhere to the contract. It created temporary, empty expectations that Mongolia is overcoming its economic crisis. Although the foreign exchange rate has decreased, the actual investment was not made. Accordingly, the exchange rate went up back.
“Investment can be made in accordance with this plan. But it should not necessarily be adhered to as a contract. Probably foreign banking and financial organizations are evaluating what risks it will have, as it is not a contract. If it was a contract, the investor would easily raise money. They would not bear any responsibility in arbitration court, as it is not a contract. This plan does not fall in line with the first ground contract.”

Short URL: http://ubpost.mongolnews.mn/?p=15074

Posted by on Jun 25 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.

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