President criticizes Parliamentary standing committee decision to take back 49% shares of Erdenet mine from private company

Parliamentary legal standing committee drafted resolution to take back the 49% shares of Erdenet copper mine from private company during its last spring session on Friday.

President Elbegdorj twitted “are private sector not part of people? They are producing 80% of wealth now” criticizing the decision.

Right now, Parliament is hearing about resolution.

Here is the draft resolution of the parliament formulated by the Standing committee

Draft resolution of the State Great Khural

Date:…….. 2017                                                 No.                                                                                         Ulaanbaatar

Re: About some measures to take about “Erdenet enterprise” LLC, “ Mongolrostsvetmet” LLC

State Great Khural of Mongolia decides following based on article 45.2 of the Constitution of Mongolia, article 43.1 of Mongolian law on State Great Khural:

1.Illegally violated state right to buy 49% common shares of the enterprises,  in violation of article 25.1.15 of the Constitution of Mongolia, articles 16.2, 29.2.6 and 7 of the law on Government of Mongolia, article 8.1.1 of the law on State and local ownership, Bilateral agreement of Governments of Mongolia and Russian Federation concerning “Erdenet Enterprise”, therefore, revoke article 1 of resolution no.330 of Mongolian government dated June 13, 2016 concerning some measures about “Erdenet Enterprise” LLC and “Mongolrostsvetmet” LLC.

2.Assign Legal standing committee /Sh.Radnaased/ and Government of Mongolia /J.ERdenebat/ immediately resolve the transfer of 49% common shares of “Erdenet Enterprise” LLC and “Mongolrostsvetmet” LLC which was transferred from ownership of Russian Federation to “Mongolian Copper Corporation” LLC back to State ownership and take measures to run these under status of state owned enterprises.

3.Government of Mongolia / J.Erdenebat/ is assigned to conduct negotiation to take back 49% common shares of “Erdenet Enterprise” LLC, “Mongolrostsvetmet” LLC based on estimation of sources such as  monetary assets deposited by Development bank and Mongolbank at Trade and Development bank, its dividends, exchequer

4.It is assigned to Government of Mongolia /J.Erdenebat/ and Mongolbank/ N.Bayartsaikhan/ to take measures to hold managing officials of Mongolbank, Government, Trade and development bank, Ulaanbaatar City bank which violated laws and regulations repeatedly.

Signature

Parliamentary resolution assigning government to take 49% shares of  the Erdenet mine from  private company " Mongolian Copper Corporation"