Dispute in mining sector of Mongolia between Rio Tinto and Mongolian government.
The Government of Mongolia is urging the Oyu Tolgoi project investors to revise the Oyu Tolgoi Investment Agreement signed in 2009 and terminate the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’, according to the statements made by Acting Minister of Justice and Home Affairs Kh.Nyambaatar and Deputy Chief of Cabinet Secretariat B.Solongoo, when they today met Member of the Parliament S.Ganbaatar, who has gone on hunger strike, demanding Oyu Tolgoi agreement termination.
Acting Minister Kh.Nyambaatar said, “We have received Oyu Tolgoi Project Financial Model 2029. Oyu Tolgoi project sales revenue is projected to increase when the underground mine operations begin in 2023 and reach USD 29 billion by 2029. According to the financial model, USD 10 billion of that sales revenue will cover operational costs. USD 12 billion out of the remaining USD 19 billion is reported to be written off for depreciation. Per the model, we will have to pay USD 3 billion in loan after the remaining USD 6.3 billion is used for the repayment of the investment. Therefore, actions are being taken in phases to have experts conduct an independent review and determine the legal framework for the agreement termination.”