Ulaanbaatar /MONTSAME/. On December 18, representatives of the Mongolian government’s working group in charge of ensuring the implementation of State Great Khural’s 2019 resolution No. 92 held an online meeting with Jakob Stausholm, new chief executive of Rio Tinto to discuss current situation and issues concerning Oyu Tolgoi gold and copper project. 

The meeting was attended by L.Oyun-Erdene, Chief of Cabinet Secretariat, and head of the working group, Minister of Mining and Heavy Industry G.Yondon and other high-level officials, representing the government of Mongolia. 

From Rio Tinto, Arnaud Soirat, CEO of Copper & Diamonds at Rio Tinto, Elias Scafidas, Chief Financial Officer of Copper & Diamonds, Arshad Sayed, Chief Development Officer of the Copper & Diamonds, Amarjargal Khenchbish, Rio Tinto Mongolia LLC Deputy Director and other officials were present at the meeting. 

As noted in the press release by the Cabinet Secretariat of the Mongolian government, the working group has forwarded several proposals to increase the benefits Mongolia to receive from Oyu Tolgoi project and revise and improve agreements for the project, and has launched talks within the framework of the parliament’s resolution No. 92. 

“Due to issues surrounding Rio Tinto’s destruction of a 46,000-year-old cultural heritage site in the expansion of an iron ore mine in Australia, the negotiations had come to a standstill” the press release says.

“Given the effective date of Jakob Stausholm’s appointment from January 1, 2021, the working group has expressed willingness to move forward with the negotiations.” 

Voicing his concerns with the cost overruns in the development of Oyu Tolgoi underground mine as well as decline in the project benefits, Minister Oyun-Erdene affirmed the necessity to increase project’s benefits to Mongolia and improve relevant agreements and, if it is required, to terminate the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’. 

The government working group has previously put forward to the investor side to review the implementation of Oyu Tolgoi agreements. Following the proposal, a board of directors of Oyu Tolgoi LLC approved a resolution on November 30, 2020 to establish a special committee mandated to conduct an independent review of the causes of the cost overruns and delays to the Oyu Tolgoi underground development. 

Rio Tinto expressed its readiness to resolve any issues through dialogues and consensus and to introduce certain proposals aimed at increasing Mongolia’s benefits from the project while achieving mutually beneficial cooperation.

"The working group of the government of Mongolia is working to intensify talks on the Oyu Tolgoi project" the press release says.