GOM may lose 12-20% stake of its 51% ownership in EMС www.zgm.mn
MP Baasankhuu Octyabri has sent an official letter to Chief Cabinet Secretariat Oyun-Erdene Luvsannamsrai on resolving issues regarding Erdenet Mining Corp.’s (EMC) 51 and 49 percent stake dispute.
According to Mr.Baasankhuu, Government of Mongolia may lose 12-20 percent of its 51 percent stake ownership to China. “International Court of Justice (ICJ) has decided Mongolia to pay USD 99 million to Standard Bank, which was sold to China, for interest and fine. The amount of debt EMC owes to the bank for violating its loan agreement increases every day and stands at about USD 126 million as of this week. If China turns to ICJ to swap EMC’s fine by the plant’s stake, Government of Mongolia will lose 12-20 percent.”
Now, it’s up to the government to negotiate with Standard Bank. Mr. Baasankhuu warned that the issue needs to be settled immediately, as the debt EMC owes Standard bank increases by USD 1.2 million each month.
Published Date:2019-03-06