Улаанбаатар
QSC company’s concession agreement terminated
Economy | Mining
Ulaanbaatar /MONTSAME/ At its
meeting on April 13, the Cabinet nullified its resolution No. 69 of February
28, 2015 on establishing concession agreements. Relevant officials were thus
ordered to send a notice about the termination of the concession agreement on
implementing a mining and metallurgical complex project, which was established
between the Ministry of Economic Development and QSC company in April 4, 2014,
to the company and transfer the management and assets of Darkhan Metallurgical
Plant JSC from QSC.
The concession agreement
states that the competent entity shall submit a proposal to terminate the
agreement to the Cabinet on the basis that the project could not continue as
project activities come to a stop for more than two years due to an error by
the concession holder.
The concession holder has not
built a plant with an annual capacity of not less than 500 thousand tons nor
carried out extensions and upgrades to bring the capacity of Darkhan
Metallurgical Plant to 300 thousand tons per year.
It was deemed that the project
became inactive because the company failed to complete the measures to
implement the project to extend Darkhan Metallurgical plant and develop a
mining and metallurgical complex in the eight years since the establishment of
the agreement and the company cannot implement the project.
