Government loses arbitration against Standard Bank again www.zgm.mn
Earlier in July, Member of the Parliament Baasankhuu Oktyabri announced that the Government of Mongolia lost arbitration battle against Standard Bank of South Africa, which is now owned by China. Sanjmyatav Yadamsuren, Head of the Parliamentary working group responsible for inspecting the 51 percent ownership issues of Erdenet Mining Corporation (EMC), confirmed yesterday that the Mongolian Government has lost twice at the London Court of International Arbitration. EMC, the biggest contributor to budget revenue, was sanctioned in the international market in February 2018 in connection to a dispute over Mongolian Government’s 51 percent ownership of EMC. A decade ago, Batkhuu Sharavlamdan, CEO of Just LLC, loaned USD 140 million from Standard Bank of South Africa, which now belongs to China, collateralizing Mongolian Government’s 51 percent ownership of EMC.
Mongolia now has to cover the plaintiff's expenses of the last litigation
MP Sanjmyatav informed, “The working group concluded that it is unnecessary to send a Parliamentary delegation to the arbitration court. As a state monitoring, a representative of the Independent Authority Against Corruption was sent. The arbitration ruled against Mongolia.” The arbitration previously obliged the EMC to pay USD 51 million, lowering Standard Bank’s USD 109 million invoice. However, the interest and costs incurred by the plaintiff added up to USD 172 million as of March 1, 2018. Since then, the interest piled up by around USD 900 per day. Also, Mongolia now has to cover the plaintiff's expenses of the last litigation.