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Rio Tinto offers to work with the government to generate MNT 1 trillion of additional revenue for Mongolia www.montsame.mn
Following the Cabinet meeting today, August 31, Minister of Justice and Internal Affairs Kh. Nyambaatar held a press briefing to introduce a letter from Rio Tinto’s management team to the Prime Minister of Mongolia.
In the letter, as head of the Oyu Tolgoi mine project management team, Rio Tinto has apologized for delaying the development of the underground mine, expressing regrets for the schedule delays amid the pandemic and difficult economic times. The letter also reads that Rio Tinto offers to work with the government to generate MNT 1 trillion (USD 350 million) of additional revenue for Mongolia over the next three years, which is an addition to existing taxes and royalty payments generated by an existing open pit mine at Oyu Tolgoi.
To speed up returns that the Mongolian government will earn from the Oyu Tolgoi project, a working group set up by the both sides is willing to bring the term of dividends to be paid by Oyu Tolgoi to Erdenes Oyu Tolgoi LLC closer and to reduce the amount of debt that would have accrued on the investment of Mongolian side.
Mr. Nyambaatar said that Rio Tinto has officially expressed that it is ready to negotiate on reducing the current debt of USD 2.3 billion accrued on the Mongolian share of 34 percent. “Moreover, Rio Tinto expressed readiness to continue talks in all aspects and the project must be successfully proceeded, thus asking to adjourn the counterclaim raised by the Mongolian side at the London Court of International Arbitration and freeze the dispute temporarily. The government’s working group will convene this week and announce a date of meeting with a Rio Tinto representative headed by B. Bold, a head of Rio’s copper division.”
The letter also reads that the Rio Tinto wants a long-term agreement on a sustainable energy supply for the Oyu Tolgoi mine as it seeks to complete the development of underground mine.
Published Date:2021-09-01
