Negotiation on Oyutolgoi to be continued
Shareholders meeting of Oyutolgoi LLC was held once again in Ikh Tenger complex past afternoon on February 27th. The meeting where parties negotiated on certain issues lasted without a solution after hours.
Hence, the shareholders meeting of Oyutolgoi is expected to be re-scheduled after a break. A working on negotiation will talk to investors of the project to re-schedule next meeting.
The working group lead by Minister of Mining, D.Gankhuyag was representative of Mongolian Government at the shareholders meeting as before.
This the second time that the shareholders` meeting of Oyutolgoi has been postponed without a solution since issues of the project uncertain cost increase, feasibility study implementation failure raised.
Mongolian Government and investors signed Oyutolgoi Investment Agreement in 2009. According to the Investment Agreement the first commercial production at the largest untapped copper and gold deposit was scheduled in 2013.
But Mongolian Government raised some issues over project costs, revenues and taxes.
The project cost blown up to 7.1 billion US dollar, almost a 40 percent rise from planned 5.1 billion US dollar and the costs since the start of the underground mine has risen from USD 14.6 billion as oulined in the feasibility study, to a stuggering USD 24.4 billion, 68 percent increase cause uncertainty about the project.
Therefore Mongolian Government demands investors to re-negotiate on the issues.
Hence, the shareholders meeting of Oyutolgoi is expected to be re-scheduled after a break. A working on negotiation will talk to investors of the project to re-schedule next meeting.
The working group lead by Minister of Mining, D.Gankhuyag was representative of Mongolian Government at the shareholders meeting as before.
This the second time that the shareholders` meeting of Oyutolgoi has been postponed without a solution since issues of the project uncertain cost increase, feasibility study implementation failure raised.
Mongolian Government and investors signed Oyutolgoi Investment Agreement in 2009. According to the Investment Agreement the first commercial production at the largest untapped copper and gold deposit was scheduled in 2013.
But Mongolian Government raised some issues over project costs, revenues and taxes.
The project cost blown up to 7.1 billion US dollar, almost a 40 percent rise from planned 5.1 billion US dollar and the costs since the start of the underground mine has risen from USD 14.6 billion as oulined in the feasibility study, to a stuggering USD 24.4 billion, 68 percent increase cause uncertainty about the project.
Therefore Mongolian Government demands investors to re-negotiate on the issues.
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