Ot Dubai Agreement

Detailed information can be found in copies of the agreements below. They have reached the agreement to the best of their borders and have already invested. The denunciation of the agreement would harm not only Rio Tinto, but also the interests of the 15 banks that financed the project and the 10 countries that support it. In other words, they have nothing to fear through risk sharing. Their likely answer would be that we can terminate the agreement to stop the project and meet with it before the Arbitration Tribunal. After obtaining a loan from these major international banks and being the project manager of this huge project, Rio Tinto has no choice but to provide insurance on all fronts. It is true that changes must be made to the OT agreement or that the above issues must be resolved under the current agreements. The Investor Party said it was ready to start negotiations to increase the benefits Mongolia can derive. It is exactly ten years since Mongolia signed an agreement with foreign investors to start mining minerals in the world`s third largest copper deposit, Oyu Tolgoi (32 million tonnes of copper). The project is jointly led by the Mongolian government (34 per cent) and turquoise Hill Resources (66 per cent), which is listed on the Toronto Stock Exchange.

The fact that Rio Tinto owns 51 per cent of Turquoise Hill`s resources has essentially enabled the development of the contribution. About 80 per cent of Oyu Tolgoi`s total value is between 700 and 1300 metres underground, while the remaining 20 per cent has been extracted from their open pit mine. Many issues and challenges remain, including the signing of the investment agreement, without clear agreement on the feasibility study, which allowed the cost of projects to increase twice as much as the original estimate, and the investing party to receive 3% of the costs in the form of administrative costs, and the persistent tax conflicts due to the lack of coordination between the parties with respect to costs. In its report, the parliamentary working group stated that there had been a tax violation of 3.2 trillion NDMs in 2009-2015. The 2015 Oyu Tolgoi copper and gold mine extension agreement, known as the Dubai Agreement, was reviewed by a parliamentary working group. High-profile figures participated in the signing of the agreement, whose transparency has long been disputed. The working group`s report was submitted to the Standing Parliamentary Committee on Economic Affairs. According to L.Oyun-Erdene, head of the cabinet`s secretariat, the Mongolian side sent its audit results to Rio Tinto, which is the main owner and operator of the mining complex; However, it refused to amend the agreement. The 4-5 people responsible for signing the agreement are currently under investigation by the Independent Anti-Corruption Authority and other legislative bodies. In its March report, a parliamentary working group responsible for reviewing the Oyu Tolgoi investment agreement said that changes needed to be made to the OT and the Dubai agreement. Despite assurances from D.Sumiyabazar, Minister of Mines and Heavy Industries, who said that the Dubai agreement would not be denounced despite the necessary improvements in the agreements, the cabinet or the National Security Council have so far remained silent on this issue. «It will be very difficult to put an end to the underground mine plan, because it must be done by mutual agreement,» said Otgochuluu Chuluuntseren, an adviser to the Mongolian Centre for Economic Policy and Research on Competition and a former government official.