Submitted by MONTSAME on

Member of Parliament Ms G.Uyanga has recently sent a letter of inquiry to the Prime Minister in which she had requested the head of government to give objective information on a present situation with the Oyutolgoi project.
First of all, Ms Uyanga has asked the following questions: whether the Government got acquainted with reports of the Working group that was set up to carry out monitoring on expense performance of the Oyutolgoi project; what conclusion did the Government draw from these reports; what was the reason for classifying the reports as a state secret.
Ms Uyanga also asked PM to express his Government’s attitude towards the issue about additional financing for the underground mine construction at Oyutolgoi. In connection with this, she had requested PM to explain the reason behind the increase of investment size and the reason why the Government has agreed with that.
As she said “according to the draft Investment and shareholders’ Agreement the size of investment needed for the development of the Oyu Tolgoi copper-gold complex was initially estimated at 2 724 mln dollars in 2007, but this amount went up to 5.1 bln dollars in 2009 when the Agreement was signed”.
As mentioned in the Feasibility Study performed several times during three years by the AMMEC company of Canada and the MINPROC company of Australia, the total amount of required investment was at 5 124 mln dollars, and now it’s been only 5 years since the project was started, but abovementioned figure has increased up to 9 bln dollars.
Besides that, there are two different figures in terms of the investment size. Total sum to be invested was estimated at 4 bln dollars as reflected in the Investment Agreement, but this amount is significantly varied /up to 5.1 bln dollars/ in the Feasibility study report received by the Minerals Council of Mongolia. In connection with this, Ms Uyanga has asked PM whether the Government is holding talks with investors in order to clarify the difference in these figures.

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