MCC: Decision on Erdenet share transfer was not a mutual agreement www.montsame.mn
Ulaanbaatar /MONTSAME/ The Government had its irregular meeting on January 4, and announced that Erdenet Mining Corporation (EMC) has become 100 percent government-owned now, as government takes EMC’s 49 per cent shares. In response, Mongolian Copper Corporation (MCC) held a press conference on the matter in the Mongol News media center on January 5.
BoD Chairman of MCC M.Munkhbaatar expressed the company's stance, saying, “Government’s statement sounds like we have mutually reached to agreement and established an agreement, which is not true. No such agreement was conducted and we think we have become a victim of politics. We are deplored by the Government’s action that overrode Supreme Court’s decision. MCC competed with companies from China, Russian Federation and Kazakhstan to bring back 49 percent of EMC to Mongolia. This fact has been distorted from many sides, with suspicions circulating that have no basis in reality.”
MCC’s purchase of EMC shares brought many positive outcomes, he stressed. Specifically, 500 tenders were announced in 2017, while in 2016 just one was conducted and as a result of it, MNT 15 billion was saved, and each worker was rewarded MNT 500 thousand during New Year celebrations. Additionally, tax paid by EMC last year was 4 times more than previous year.
“We do not understand how Government can act outside the Constitution and annul the decision made by Supreme Court. We have not even received an official notice on the Government decision yet,” said Mr.Munkhbaatar.
MCC’s lawyer Batbayar mentioned that there was no deal between the Government and MCC and rights of a private organization has been seriously violated and therefore MCC has every right to protect its interests.
MCC Executive director Ts.Purevtuvshin expressed the company's intention to file a complaint to international arbitration.
Published Date:2018-01-09