Request for the Deliberation of the Investment Agreement with “Orano Mining SAS” Submitted to the Parliament www.montsame.mn
On January 8, 2025, Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai submitted requests to Chairman of the State Great Khural of Mongolia Amarbayasgalan Dashzegve for the deliberation on additional financing for the Oil Refinery Project EPC-04 package and the draft Investment Agreement with the company "Orano Mining SAS."
Due to the economic crisis in recent years, the estimated cost for constructing the EPC-04 package of the Oil Refinery Project, including the main refinery facilities and oil processing cost, increased by approximately 30 percent compared to the 2018 feasibility study. The increase in costs was driven by the rise in materials, technical equipment prices, and additional requirements set by technology licensors. In this regard, the Ministry of Finance of Mongolia has submitted a request to finance the additional costs through a loan from India's EXIM Bank, which was approved. Thus, the request for deliberation of the loan agreement by the Parliament was submitted, noted Prime Minister Oyun-Erdene.
The draft Agreement with "Orano Mining SAS," the investor of "Badrakh Energy," will be reviewed and deliberated by the Parliament. If ratified, the Agreement will become the second-largest foreign direct investment agreement from a third-neighbor country. It is expected that foreign direct investment will increase, generating 520 billion MNT annually for the state and local budgets, and a total of 17.1 trillion MNT over the life of the project. Additionally, the Sovereign Wealth Fund will receive 61.5 billion MNT annually, and 2 trillion MNT over the project’s duration. The project is also expected to introduce new technology and create 1,600 jobs.
Published Date:2025-01-10