Ot Dubai Agreement

They have reached the agreement to the best of their borders and have already invested. The denunciation of the agreement would harm not only Rio Tinto, but also the interests of the 15 banks that financed the project and the 10 countries that support it. In other words, they have nothing to fear through risk sharing. Their likely answer would be that we can terminate the agreement to stop the project and meet with it before the Arbitration Tribunal. Is it possible to denounce the Dubai agreement? None of the official sources commented on the negative consequences of this approach. Similarly, no concrete solution has been formulated for the solution and the improvement of the ends. Although the agreement has been constantly paralyzed in the past, no soul spoke of solid and justified reasons. Especially not our politicians. Probably not in the future.

Even if the current Parliament does not amend the agreement, it will try again the next one. Without change, the flag will be. to an eternal mantra of politicians. In March 2013, a working group was established to review initial investments in the Oyu Tolgoi project as part of the joint resolution of Mongolia`s Deputy Prime Minister, Minister of Mines and Finance Minister. Rio Tinto then constantly insisted that an immediate solution to its underground financing of development be found, which the firm could wait for after the investment review. The task force`s conclusion concluded that the initial investments were $1.4 billion higher than the amount taken into account in the feasibility study approved in 2010. This was ultimately seen as a violation of Rio Tinto`s agreement. The controversial review led to a dispute between Rio Tinto and the Mongolian government, which led to the shutdown of the underground development project in August 2013. The cost overrun required an immediate solution due to concerns about ROI delays for shareholders, particularly the Mongolian government, and the rising cost of debt repayment. On the other hand, it was a unique opportunity to make positive changes to the agreement by condemning Rio Tinto for violating the treaty. The Dubai agreement was therefore created to escape this dispute and revive underground development.

The 2015 Oyu Tolgoi copper and gold mine extension agreement, known as the Dubai Agreement, was reviewed by a parliamentary working group. High-profile figures participated in the signing of the agreement, whose transparency has long been disputed. “Of course there will be international and local pressure, but when we have the rule of law… The agreements should be permanently changed,” he said in a separate television interview. Mongolia has received almost 34% of the ownership position, has tens of thousands of citizens employed by OT, they pay taxes, the government and local communities receive even more taxes, TRQ/RIO will build an additional power plant of 330 million euros. What more do these greedy Mongols need? When they go to international arbitration, they will lose and LOSE BIG! If they do not respect their agreements, investments in their country will stop and they will remain a very poor country. Oyu Tolgoi is their golden goose, they better think long and hard before trying to defraud the foreign investments that made this whole project possible. “It will be very difficult to put an end to the underground mine plan, because it must be done by mutual agreement,” said Otgochuluu Chuluuntseren, an adviser to the Mongolian Centre for Economic Policy and Research on Competition and a former government official. A lawyer who participated in Mongolian mining operations on condition of anonymity said opponents of the original agreement argued that the Dubai agreement had made changes to the 2009 agreement and therefore should have been submitted to Parliament for full approval. Instead, it has just been approved by the Prime Minister. ULAANBAATAR, April 5 (Reuters) – A group of Mongolian lawmakers has recommended that one of the agreements supporting Rio Tinto`s Oyu Tolgoi copper mine be scrapped and another, adding to the political problems of the giant project.