Former director Ts.Sedvanchig about resignation

Ulaanbaatar /MONTSAME/ The former director of the "Erdebes Oyu tolgoi" LLC Ts.Sedvanchig is explaining to the news.mn site why he was freed Monday from this position by a decision of the Board of Directors. Regarless of his being on this post or not, the country's authorities must not fulfil Rio Tinto's willingness, he says. Question: You had sent a letter to Rio Tinto on the additional financing, probably, this has affected your career, and what the letter was about? Answer: The Premier had ordered me to send it, and even if I had not done it someone else would have sent it anyway, and when the time come, I will expose it. Q: In the letter you had written--as it is speculated--that only parliament is to decide the additional financing not the government, and that this triggered Rio Tinto's steps. Why have you done so when the government could have decided it alone? A: Does not it seem interesting to you that the government is talking about the additional financing for more than a year but still cannot decide it? Rio Tinto got angry when parliament had discussed Oyu tolgoi matters on February 1, five days later one of its chief leader announced at shareholders meeting that it would freeze US dollars investment in the mine. But we have managed to have Rio Tinto completed the concentrating plant and launched the shipping without ceasing the investments. Then he said that Rio Tinto's decision to stop a financing for the underground mine and to lay off over thousand employees is a breach of the Agreement. "Furthermore, the treaty might go invalid if the investor's side does not make any changes within 60 days after the Mongolian government sends its decision. This is an extraordinary right of the Mongolian side to annul the treaty in such cases. At the same time, Rio Tinto’s step gives us a 'historical' chance to alter the investment agreement, otherwise, if the Mongolian side agrees with Rio Tinto, the agreement will become a 'pawn' for loans, which many banks would give, and we will not be able to utter a word for 15 years at least." To a question "what about Rio Tinto's other demands our side cannot accept at all?" he replied that this matter is a business secret "but when time comes it may be revealed, in general, it will be enormous debt to be carried by several generations of Mongolians."