Oyu Tolgoi LLC is being audited and the reasons for an alleged 2 billion USD cost overrun will become clear, said Minister Ch.Ulaan
Home pageOyu Tolgoi LLC is being audited and the reasons for an alleged 2 billion USD cost overrun will become clear, said Minister Ch.Ulaan
Oyu Tolgoi LLC is being audited and it would be clear the reasons for an alleged 2 billion USD cost overrun, said Minister Ch.Ulaan
Minister for Finance Ch.Ulaan reported on policy and implementation being carried out to date by the Ministry and the Government, also gave answers on the current economical situation of Mongolia during a press conference held at the Ministry of Foreign Affairs on April 17, 2013. 
On question were the foreign investments being decreased, Minister Ch.Ulaan clarified as follows, “In 2010, foreign investments were estimated at 1.6 billion USD, the volume reached 4.6 billion USD in 2011 and declined to 3.8 billion USD in 2012, but the latter amount does not comply with the Foreign Investment Law. 
In addition, the Oyu Tolgoi Investment Agreement was established unfruitful to civilians and it was approved on many grounds. For instance, during the project implementation the investment was exceeded by over 2 billion USD budget, which means Mongolians’ debt increased accordingly, moreover the period of Mongolia’s net profit is extended by another 30 years. Therefore, we need to look over the agreement and an investigation team comprised of authorities from Ministries of Mining, Economic Development and Finance, also General Agency for Specialized Inspection, and “Erdenes Oyu Tolgoi” in collaboration with a team from “Rio Tinto” are investigating why the primary investment has been overrun so far, and currently we are conducting an audit at the Oyu Tolgoi company
Oyu Tolgoi has invited an international auditor company and all procurement documents are being checked now. As soon as the audit is completed, the reasons for an alleged 2 billion USD cost overrun at the mine will become clear. 
Also, it is true that Mongolia pays 260 million MNT per day for “Chinggis” Bond’s interest, but there is no worry, because it is being arranged. As of today, Mongolia’s total debt is estimated at 9.8 trillion MNT (approx. 7 billion USD) and it is legalized not to exceed over 50% of Mongolia’s GDP, and we are following the regulations". 

 

April 18, 2013


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