At the regular Cabinet of Ministers
meeting held on May 23, the Minister for Mineral Recourses and Energy D.Zorigt has introduced the current implementation of the Oyu Tolgoi project and measures to be taken in further. As seen from the introduction by D.Zorigt, the construction phase
of the project is 80% complete. In frames of the project 18,773 people are employed, whereas 65.8% or 12,354 people are Mongolians.
Since 2010, the project made 887 million USD worth of contracts with 2,500 small and large business entities and organizations of Mongolia that supplies the Oyu Tolgoi
with products and services. In response to the introduction, the Cabinet imposed duties to monitor implementation of the project and participation of the Mongolian Government in the project as a share holder to affiliated Ministers and Heads of the correspondent agencies.
Following the imposed duties, it has been resolved to improve participation and supervision of Mongolian shareholders
and to hold a negotiation to include Government representation in the board of directors of the Oyu Tolgoi LLC. Moreover, it has been resolved to place constant control over the cost and expenditure of the project as cited in the technical and economical feasibility study and if necessary involve specialized and state owned organizations for making an accurate evaluation and inference.
The other issue was discussed and promoted at the Cabinet, the bill on promoting leather and skin processing national industries to manufacture final products and to issue the Government bonds drafted by the Parliament was resolved to submit to the Parliamentary session. The Government sees that if the bill gets enacted it would open up possibilities to promote manufactures’ value added final products for export
purpose that can replace import products and to increase employment in the sector. In compliance with the draft bill the government is to issue a bond worth of 219.5 billion MNT within a 5-year term. In detail, 140 billion MNT bond with a purpose to grant soft loans to factories that fully processes leather and skin domestically and produces final products, 20 billion MNT bond for covering a loan interest incentive of the meat factories who supplies the processing factory with skin and a 59.5 billion MNT bond for granting premium for herders. As reflected in the draft bill the herders and members of cooperatives who supply the domestic skin processing factories with skin will receive premium from the Government: 3,000 MNT for a single sheep or goat skin and 15,000 MNT for a single camel, horse or cow skin, informed the Press and Media Department of the Government of Mongolia.