Shareholders Agreement to be Amended Before Year End

Written by P.Shinebayar

Some MPs announced that Mongolian government’s current 34% share in Oyu Tolgoi Deposit might reduce down to 7%, in connection with recent meeting of Governing Board of Oyu Tolgoi Ltd in Ulaanbaatar.

Last August, shareholders were ordered to study methods and versions to reduce interest rate of financing and introduce it to Mongolian side at December meeting of investors.

Consequently, the Cabinet of Ministers was introduced results of agreement signed concluded with investors on the development of Oyu Tolgoi Deposit, on December 08.

“The Government’s 34% share in the Oyu Tolgoi Deposit has not changed and will not be subject to any change”, officially stated the Prime Minister Batbold Sukhbaatar at a press meeting held after the Cabinet meeting. “Everyone shares same position that Oyu Tolgoi must be developed. In doing so, we must stick to principle of developing it in a way beneficial to Mongolia and its people. As premier, it is my firm position that some provisions of OT agreement can be looked back and of any mistake if there is must be corrected in a timely manner” Batbold said.

The above negotiations were only about the agreement of shareholders but not about the investment agreement. Premier and minerals minister have to make amendment to the shareholders’ agreement before end of the year.

source: The UB Post

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