Ulaanbaatar
Government to fully own Erdenet Mining Corporation
PoliticsUlaanbaatar /MONTSAME/ On February 10, at its plenary meeting, the closing session of Parliament discussed the matter concerning the purchase of Russian Rostech-owned 49 percent of Erdenet Mining Corporation by the Mongolian Copper Corporation, and issued a resolution on some measures to be taken regarding the copper plant.
The resolution was worked out by Parliamentary Standing committee grounded on the conclusion of the working group for examining the matter regarding the purchase of the 49 percent shares of the Erdenet plant. The working group and the Standing committee concluded that the deal has violated several legislations of Mongolia.
The resolution sets out to transfer 49 percent of Erdenet Mining Corporation to government ownership the previous Cabinet’s step regarding the selling of the 49 percent of Erdenet Mining Corporation violated the Constitution of Mongolia, Law of Mongolia on Government, Law on State and Local Property, and an intergovernmental agreement between the Governments of Mongolia and the Russian Federation. The Parliament rescinded the previous Cabinet’s resolution no 330 issued on June 13 on some measures to be taken on ‘Erdenet Mining Corporation JSC and Mongolrostsvetmet LLC’.
The Parliament ordered the Parliamentary Standing committee on Justice and the Cabinet to take urgent measures to transfer of the 49 percent sold shares to government ownership, and operate the plant as a state-owned enterprise. According to the Parliament resolution, corresponding institutions will also be held responsible for their illegal activities.
