– Some recent allegations by MPs do not reflect the reality of the Oyu Tolgoi Investment Agreement –
Ulaanbaatar, Mongolia – In a series of press releases Oyu Tolgoi copper and gold mine in the Umnugobi, corrects the record on statements made by signatories of a petition to the Prime Minister. These statements question the integrity of the Oyu Tolgoi Investment Agreement.
Some signatories to the petition claimed, “The Oyu Tolgoi Investment Agreement only enables foreigners access to Mongolia’s wealth but it must be revised and changed into a mutually beneficial agreement”.
In fact, the Oyu Tolgoi Investment Agreement is a valid legal document and was signed on the basis of the mutual benefits to all parties concerned. The Government of Mongolia, as a shareholder, will not only receive dividends but will also receive royalties, income tax, VAT, customs duty and other taxes. Furthermore, according to the International Monetary Fund, by the time the mine is operational, Mongolia will receive more than 71 per cent of the mine revenue. In other words, the Mongolian people will receive up to 71 MNT from every 100 MNT of revenue made from the mine.
It has also been reported that some claim the Oyu Tolgoi Investment Agreement is not compatible with Parliament Resolution 57 and has violated the constitution of Mongolia.
The Oyu Tolgoi Investment Agreement was signed in full compliance with the existing laws and regulations of Mongolia including the Constitution and Resolution 57. The Government, the National Security Council and the President have twice affirmed, most recently less than a year ago, that the agreement fully complies with resolution 57 and other existing laws and regulations of Mongolia.
These and other comments from the petitioners do not reflect the reality of the Investment Agreement and are creating an atmosphere of uncertainty in our society. We would like to call on the people of Mongolia to make their own minds up by visiting www.ot.mn/mn/about-us/investment-agreement.
About Oyu Tolgoi LLC (http://en.ot.mn/)
Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company and is a strategic partnership between the Government of Mongolia (34 per cent stake), Turquoise Hill Resources (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Turquoise Hill Resources and the manager of the Oyu Tolgoi project. In addition to dividends from its 34 per cent stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.
Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for phase 1 of more than US$6 billion.
Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$58 million dollars (78 billion MNT) in training and education and an additional US$27 million dollars (36 billion MNT) in the Workforce Employment Project designed to help address the general skills shortage in Mongolia
Oyu Tolgoi's key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project's shareholders and the people of Mongolia.
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