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Government struggles to avoid debt obligation over EMC www.gogo.mn
Cabinet held a closed discussion during its regular session last week. Sources claim that the discussion covered the issues concerning Erdenet Mining Corporation (EMC) in connection to the sanction of London Court of International Arbitration (LCIA) on EMC’s operations. According to some sources, the related officials of EMC were ordered to negotiate terms with the Standard Bank of South Africa and seekopportunities to avoid debt obligations.
Earlier this week, Chairman of the Democratic Party Erdene Sodnomzundui submitted a questionnaire on LCIA’s decision, Government’s measures and involvement on the issue. Sumiyabazar Dolgorsuren, Minister of Mining and Heavy Industry, has previously confirmed that EMC is obliged to pay monthly payment of USD 900 thousand.
On the other hand, Minister of Justice and Home Affairs Nyamdorj Tsend claimed that the dispute is between Standard Bank and EMC only and denied any involvement of Mongolian Government in the dispute, while Minister of Finance Khurelbaatar Chimed was clueless about the situation as he commented, “I do not have details on EMC.”
The Government has been obliged to repay a total of USD 102 million, including the legal costs, penalty and interest of the last decade.
According to a reliable source, LCIA has sanctioned the operations of EMC and suspended its financial accounts. The legal proceedings started about a decade ago after Batkhuu Sharavlamdan, CEO of Just Group, was accused of Loaning USD 140 million from Standard Bank of South Africa, collateralizing Mongolian Government’s 51 percent ownership of EMC.
Tugsbilig.B
Published Date:2018-02-08
