Parliament Forms OT Mines Watchdog

Mongolia now faces the need to conclude a new investment agreement with Ontre LLC, a company linked to the Oyu Tolgoi group deposit. In this context, the newly established temporary committee will be responsible for supervising documents and activities related to ensuring Mongolia’s interests and increasing the benefits to be derived from the project.

It should be noted that last June, Oyu Tolgoi LLC announced a temporary suspension of construction at the underground mine’s Panel 1 section. This was due to the government and Ontre LLC not having finalized their negotiations over the transfer of a license for that site. At the time, the company emphasized that the situation would not affect its 2025 copper production plan, and that its goal of ramping up output to an average of 500,000 tons per year remained unchanged.

Member of Parliament O.Batnairamdal, who will chair the committee, has repeatedly pointed out that in relation to the Panel 1 site held by Ontre LLC, Mongolia must either acquire a 34 percent ownership stake under the law, or secure a replacement arrangement through a progressively increasing royalties scheme.

According to experts, the conclusion of a new investment agreement would significantly increase Mongolia’s share of benefits, opening up the real possibility of advancing dividend payments by 8 to 10 years.

Members of the State Great Khural’s Temporary Oversight Committee:

• From the Democratic Party (DP): Sh.Byambasüren, B.Jargalan, U.Shijir
• From the Mongolian People’s Party (MPP): M.Badamsüren, O.Batnairamdal, B.Bat-Erdene, B.Bayarbaatar, E.Boloramaa, S.Zulphar
• From the HUN Party: P.Ganzorig
• From the National Coalition: D.Purevdavaa