Dubai financial plan of Oyu Tolgoi Investment Agreement to be audited by Mongolian gov’

Ceremony for start of auditing into Oyu Tolgoi underground mining development and financing plan/Dubai agreement) held on Monday was attended by D.Khurelbaatar, chief auditor of Mongolia, A.Enkhbat , advisor to the chief auditor, Ts.Batbayar, quality assurance department of National Auditing Agency, S.Enkhbaatar, head of Compliance auditing department and Oyu Tolgoi LLC officials led by executive director Armando Torres and others.

National Auditing agency is to review the Dubai financing agreement for development of Oyu Tolgoi mine according to following  article 15 of  Mongolian law on State Auditing:

1.2. To audit operations of legal entities that received financing from state budget, contributes to budget revenue, fully or partially owned by state;

1.20.To audit agreements, negotiations related to government guarantee, loan and all types of financial obligations, including technical, financial feasibility studies or investment agreements of projects to be fully or partially funded by state budget;

1.8. To be audited and assessed if it is deemed necessary.

This auditing is initiated by resolution no.06 of the Parliamentary standing committee in 2016 and the resolution no.03 passed in 2018. The auditing will cover following 2 topics: Actual investment in first and second phases of Oyu Tolgoi project and estimation of investment  and investment loan for shareholders,  loan repayment status and expected to continue throughout 2018-2019.

D.Khurelbaatar, state chief auditor stated the auditing will be done according international auditing standard” auditing agencies to find out about public expectation and depiction without reducing independence and provide timely, suitable response” and will cooperate with professional consultancy, research, engineering-technical teams based on factual information and documents. 

He pledged the auditing will be done within legal framework and adhere to principle of providing accurate and correct information for public.

Armando Torres, executive director of Oyu Tolgoi LLC said he will support the auditing operation and cooperate with auditors.