Working group about talks with Rio Tinto

Ulaanbaatar /MONTSAME/ The Ministry of Mining Tuesday called a news conference on results of a work run in London on September 23-27 to reach some agreements with the Rio Tinto Group in several matters regarding the Oyu tolgoi project. The dialogue ran in a warm and creative atmosphere, the Mining Ministry Department of Strategic Policy and Regulation Ch.Otgochuluu said. The sides considered 22 issues, a majority of which had been prepared by the Mongolian officials. As the result, the parties reached agreements on 15 issues, the rest, or some 15 matters, will be discussed in Mongolia. To solve them, three working groups were set up. It is projected that the matter on additional investment for the OT project will be tackled by December this year. A special license for a group of mineral deposits at the OT mine is being owned by the third person who is not involved in the bilateral contract. As the sides decided, the special license will be transferred to the OT company. By this, a benefit will rise for the Mongolian side, meaning that it dividend will increase 1.4 billion USD in a term of realizing the project, Otgochuluu said. The working groups will start acting from this October 7 onwards. The first one will analyze a reason of the over expending of the first-stage investment for the project, the second will estimate a geological reserve of the OT mine’s group of deposits, and the third group is to consider the additional financing for the underground mine. A deputy director of the "Erdenes MGL" company G.Temuulen said the sides in London also held talks on the expense and technical feasibility. Detailed reports on the additional financing will be given in 2-3 weeks time, he added.