Cabinet meeting on Oyu Tolgoi is scheduled tomorrow

Tomorrow, cabinet meeting of the Government of Mongolia is scheduled at 10 am to discuss the Oyu Tolgoi Investment Agreement. This extraordinary cabinet session will decide whether to sign investment agreement with Ivanhoe Mines Mongolia Inc. Before parliamentary recess, State Great Khural authorized the Government of Mongolia to conclude investment agreement with the international miners,however, Government is unable to reach an agreement.

Government of Mongolia is to conclude the agreement within existing taxation framework including windfall profits tax law. The miners (Ivanhoe Mines and Rio Tinto) wants to circumvent the Windfall Profits tax law and the Khural earlier decided not to give any tax incentives to the miners.

Prime Minister Bayar Sanjaa requested the Speaker Demberel to call for extraordinary session of the Parliament to discuss the legal issues that are blocking the Oyu Tolgoi Agreement. However, majority of the legislators are in countryside and the speaker have not yet decided to call for the session.