The State Great Khural of Mongolia had decided that it’s better to grant the right to finalize the long-term investment agreement between Mongolian parliament and Ivanhoe Mines Ltd. to the Cabinet. The State Great Khural accepted the declining of Standing Committee of Budget to discuss on the amendments in the General Taxation Law in relation with Oyu Tolgoi Investment Agreement. In other words, SGK came to decision that the Oyu Tolgoi Investment Agreement will be done with accordance to the current General Taxation Law. Thus 4 tax deductions proposed by the Cabinet were not approved by the SGK. However SGK legalized and gave the right to the Cabinet to finalize the Oyu Tolgoi IA. Therefore the Cabinet will discuss the matters related to the IA again. Many officials and individuals think this decision will lenghten the IA. According to the original draft agreement Mongolian government would be given 34 per cent equity stake in the project but the SGK requested the Cabinet to change this number up to 50 per cent. On the other hand the investors migth not agree on this decision.
Filed under: Mining
