A lawyer involved in Mongolian mining deals and speaking on condition of anonymity said opponents of the original deal argued that the Dubai deal made changes to the 2009 deal and therefore should have been subject to full parliamentary approval. Instead, it was only approved by the Prime Minister. Please note the full agreement via the link below. The deal will pave the way for the next phase of development, which has faced cost and time overruns and led to bitterness between the mining giant and its junior partner. CT had also spoken out against a rights issue as part of a new financing plan, but reached an agreement with Rio in April, a month after the Toronto-based company`s ceo resigned following pressure from Rio. Under the terms of the agreement, Oyu Tolgoi will contribute $5 million annually to a Development Support Fund (DSF), jointly managed by Oyu Tolgoi and the community, to community programs and projects in Umnugobi Aimag. The main objective of the agreement is to create a strong governance structure for Oyu Tolgoi and local communities in order to achieve more effective cooperation and respect mutual commitments. The agreement sets out how the parties will work together for sustainable development in key areas such as water, environment, pasture management, cultural heritage, tourism, local business development and supply. “An unwavering commitment to respect legal agreements and contracts negotiated fairly and in good faith will put Mongolia in a strong position to raise funds for major projects. The benefits of these projects will in turn provide substantial funding for government programs, the construction of national infrastructure and the improvement of the quality of life of all Mongolians. “It will be very difficult to end the underground mine plan because it will have to be done by mutual agreement,” said Otgochuluu Chuluuntseren, a consultant at the Mongolian Center for Economic Policy and Competition Research and a former government official. Bold Baatar, Chief Executive Officer of Rio Tinto Copper, said: “This agreement and alignment with TTC represents an important milestone in the future development of Oyu Tolgoi, which is expected to become one of the largest copper mines in the world and one of the largest copper mines in the world in the coming years and a significant contribution to the Mongolian economy.
The beginning of reprofiling while listening, engaging and resolving the concerns of the Government of Mongolia are crucial steps to maintain the momentum of timely delivery of the Oyu Tolgoi underground project. Terbishdagva Dendev, head of a parliamentary working group set up last year to review the implementation of the Oyu Tolgoi agreements, told reporters this week that the group had concluded that the original 2009 agreement should be revised. “We are pleased to have reached a constructive and fair agreement with Rio Tinto to fund the underground development of Oyu Tolgoi,” said Steve Thibeault, Interim Chief Executive Officer of Turquoise Hill. With a binding financing agreement, which now establishes a process according to a known schedule, we will be able to advance the development of the underground project at Oyu Tolgoi as quickly as possible. We remain committed to continuing to deliver benefits to all stakeholders, including Mongolia and its citizens, and to create significant long-term value for telecommunications during this project. â Detailed information can be found in copies of the following agreements. “Of course there will be international and local pressure, but if we have the rule of law. the agreements should be changed forever,” he said in another television interview. The Mongolian government has threatened to cancel the 2009 investment agreement for the Oyu Tolgoi mine if international tax arbitration is not rejected.
ULAANBAATAR, 5. APRIL (Reuters) – A group of Mongolian lawmakers has recommended scrapping one of the agreements that underpin Rio Tinto`s Oyu Tolgoi copper mine and amending another, adding to the giant project`s political problems. The threat to cancel the deal is the latest development in a conflictual relationship between the mine`s owners, with the government saying in January it was not happy with the updated plan for an above-average underground expansion of the mine. The 2009 investment agreement has long been a bone of contention. MELBOURNE (Reuters) – Rio Tinto Ltd said on Friday it had reached a binding agreement with Turquoise Hill Resources Ltd to finance the expansion of the huge Oyu Tolgoi copper and gold mine in Mongolia. Turquoise Hill resumed deliveries to China last month after the Canadian miner declared a case of force majeure on some Chinese contracts last month due to restrictions imposed by Covid-19. Our Standards: Thomson Reuters` Principles of Trust. Rio Tinto did not immediately comment on the matter when contacted by Reuters.
Rio Tinto plc 6 St Jamesâs SquareLondon SW1Y 4ADUnited KingdomT +44 20 7781 2000Registered in EnglandNo. 719885 For more information, contact us on Facebook and Twitter. The government has now filed its defence with a counterclaim. See the source version on businesswire.com: www.businesswire.com/news/home/20210408006002/en/ The Gobi Desert copper deposit promises to become one of Rio Tinto`s most lucrative properties, but it has repeatedly faced challenges from politicians claiming that the spoils of the country`s mining boom are not evenly distributed. “The benefits to Mongolia resulting from Oyu Tolgoi are based on the basis of the Investment Agreement, which provides a solid foundation for the development of Mongolia`s economy for many decades. Note that this policy may change if the SEC manages to SEC.gov to ensure that the site operates efficiently and remains available to all users. TRQ said the government filed its defense statement and counterclaim regarding an international tax arbitration initiated by Oyu Tolgoi in February 2020. .