If the Oyu Tolgoi Investment is important for Rio Tinto, let’s discuss it here in Mongolia, said President Ts.Elbegdorj
On February 01, 2013, at the plenary session of the State Great Khural (Parliament) of Mongolia, Prime Minister N.Altankhuyag made a statement regarding the Oyu Tolgoi Investment Agreement, noting that such a statement is required prior to the upcoming shareholders’ panel meeting with authorities of the Rio Tinto Group
, moreover the President Ts.Elbegdorj also delivered his remarks.
Premier N.Altankhuyag said, “We have been requesting to give a reason of increased expenses to date, but it is not considered yet. It is baseless to agree with a self-made changed volume, besides it is breaching the law. Also, we are demanding to pay more attention to the Mongolian workers’ payment, social welfare, make open on purchasing products, services and contracts, in addition involve more domestic entities into these activities”.
President Ts.Elbegdorj stressed, “The Oyu Tolgoi
issue is a matter of Mongolian state consideration, today as a President of Mongolia, I do give the following regulations to the Government of Mongolia.
First, the Government of Mongolia is standing on its legally authorized position on Oyu Tolgoi Investment Agreement. Oyu Tolgoi has been built on the territory of Mongolia. Now it is time to request that a Mongolian representative be in involved into the board of management. Meanwhile, financial control on its activity is closed absolutely, besides intercurrence and its transparency. Mongolia is a nation governed under law, where its citizens must be paid, enrolled and partaken.
Second, the issue to emphasize is regarding an improved management and reserved payment. The management authorities are spending 2.5 times higher compared to world experience. It is not acceptable.
Third, the initial calculation for the project finance was estimated at 5.1 billion USD including all expenses, but currently the volume reached 7.1 billion USD or increased by 40%. According to an original estimation, 14.6 billion is required to complete the project, but now investors are forwarding 24.4 billion USD statement to finish the project. If the investors and financial institutions are thinking to manage Mongolia in this way, we would say from now on - No Way.
Fourth, Oyu Tolgoi LLC
and all its transactions and trades have to be serviced through Mongolian bank institutions. Moreover, an external laboratory on copper concentrate must be established that would study how much copper and gold are being excavated in the territory of the Oyu Tolgoi site, besides to monitor what else is being produced and transported that later causes suspicion.
Fifth, the issue to be concerned is on local civilians, employees and the natural environment. Meanwhile, the area is facing many difficulties such as water supply, trade waste and dust. I do repeat, the factory is built on the territory of Mongolia. These factors are affecting the national interests of Mongolia, despite the fact that herdsmen and the grassroots, besides pasture and stock are becoming an object of victims.
Some investors are comparing Mongolia with other countries. I do not think to accept this point. Hence, today we need to sit behind a table with leading decision-makers of the Rio Tinto Group. Mining Minister D.Gankhuyag is inviting these personnel, particularly a person who is responsible on this matter. If the Oyu Tolgoi Investment is important for such a big company as Rio Tinto, let’s discuss it here in Mongolia. We are requesting to discuss and hope to reach a consensus”.