Minister Enkhsaikhan makes statement on Tavan Tolgoi draft agreement

Ulaanbaatar /MONTSAME/ A head of the working group responsible for the negotiations with the strategic investor for Tavan Tolgoi coal deposit, Minister M.Enkhsaikhan said in his statement April 8 that this draft released on the www.parliament.mn website "is an initial technical document issued in January and was not officially submitted to parliament". ________________________________________ He asked the public to get reliable information from the working group's official website "www.megaproject.mn" and highlighted that a successful implementation of Tavan Tolgoi (TT) project will meet the interests of Mongolia, and that the draft has been developed in accordance with all related laws and regulations of our country. "Partial disclosure and examinations might bring public misunderstanding about the negotiations," he added. He explained the project’s economic outcome as three main aspects. Firstly, the economic efficiency is to stand approximately at USD 650 million. The value comprises the income from the project to cover advance payment of USD 200 million, USD 280 million for the repayment of Government's financing for the railroad construction, and USD 142 million for settling the debt to Chalco company of China. "The project will be efficient for the localities from the very beginning as it will accumulate in localities and state budgets 360 billion MNT every year, including the royalties, taxes and payments for mining operations at Tsankhi. Secondly, he went on, the project is expected to expand Mongolia’s Gross Domestic Products (GDP) by more than ten percent. The project will include 500-600 domestic companies as supplier and executor, creating 8-12 thousand jobs, he added. It will also incur annual operational expenses equivalent to USD 0.7-1 billion, most of which can be absorbed by the domestic economy. Thirdly, the Minister said, a successful implementation of the TT project "sends out positive messages to foreign investors. Undoubtedly, the project can serve as a 'headwagon' for such mega projects as on the hydro power plant at the Eg River and the power plant of Baganuur".