Breakthroughs on Oyu Tolgoi copper deposit Investment agreement:no tax breaks for Rio Tinto and Ivanhoe Mines

Tomorrow PM Bayar is going to request the Speaker to call for irregular session of the parliament next week. Bayartsogt Sangajav, the Finance Minister said "Government is proposing to amend four laws in relation to the OT agreement. These are Windfall Profits tax law, Corporate tax law to allow tax loss carried for eight years, Water law and Law on Motor road to allow the miners to build road." The Khural may reject or pass these amendments. If rejects, it will delay conclusion of the OT agreement.
According to the minister, the miners will not enjoy any tax breaks or incentives and taxation will not be stabilized. Both sides agreed that initial investment amount for the giant copper and gold deposit will be four billion $US. Previously, miners were saying it will require five billion $US for development of the deposit.
The Rio Tinto and IVN representatives met with an official of the State Great Khural and explained that the letter sent previously by the miners meant to explain about technicalities of the OT IA to the lawmakers and not meant to pressure them. This was very face-saving act by the miners which quickly realized that the letter backfired.
The investment agreement will not go through legislature as government is fully authorized to conclude it within existing legal framework.

Reporting by MonInfo News and Information service.



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