The Mongolian Government Wins the Lawsuit Against Altandornod Mongol LLC

Written by P.Shinebayar

The Government of Mongolia wins a dispute filed by Russian invested “Altandornod Mongol” LLC at an International Court of Arbitration, the Mongolia’s Ministry of Justice says.

Altandornod Mongol filed case against the Government of Mongolia and demanded US$1.6 billion, claiming that the Government of Mongolia imposed 68% windfall tax based on discriminatory basis, breaching an intergovernmental agreement between Mongolia and Russia.

“The Arbitration Court made a decision 100 percent in favor of Mongolia” said Nyamdorj, Minister of Justice and Internal Affairs.

The Court decided that Mongolia have the right to collect all taxes from Altandornod including US$65 million for mining nearly 2,5 tons of gold and US$2 million as security of its contract obligations , pursuant to Mongolian laws.

“We hope the decision can be a good signal for foreign companies and investors operating in Mongolia that they must obey Mongolian laws and regulations and that any dispute can be solved as per Mongolia’s own legislations” said Nyamdorj.

Altandornod mined 2,5 tons of gold and sold them without paying windfall tax of 68%.

It also avoided payingUS$2 million as the security of its obligation. The case lasted three years between the Government of Mongolia and “Altandornod Mongol”.

Source:UB Post newspaper