Mongolie : Tavan Tologi shares for Japan and Korea to be determined

Mis en ligne le 2011-09-17

Tavan Tologi shares for Japan and Korea to be determined

Tavan Tologi shares for Japan and Korea to be determined

Sat, 2011-09-17 05:00

        A working group on the Tavan Tolgoi draft proposal met at the Government House on Thursday. The National Security Council has rejected the Government’s draft proposal, saying revisions need to be made in the allotment of shares to the consortiums investing in the project.

The working group has also been asked to make sure the proposal conforms with the 39th protocol of Parliament, which governs matters concerning the mine.

The working group will determine how many shares go to Japan and South Korea, and will alter the allotment of shares in the draft proposal, which had China receiving 40 percent, the United States 24 percent, and Russia 16 percent.

N.Altankhuyag: NSC to revise Tavantolgoi proposal

The head of the DP and first deputy prime minister, N.Altankhuyag, told our correspondent that the National Security Council (NSC) has decided to revise the allotment of shares in the draft proposal of the Tavantolgoi agreement. An NSC working group is discussing the matter.

N.Altankhuyag said that the proposal does not violate the 39th protocol of Parliament, which says the Tavantolgoi deposit is 100 percent state property, with ten percent to be distributed directly to citizens through shares, 30 percent to be sold on international stock exchanges, and ten percent to be allocated to domestic organizations. The details of that last provision have not been finalized yet. Each citizen would receive 365 shares.
The protocol also says domestic and foreign companies can invest in certain areas of the mine.

Coal is already being mined in some areas of the site, and a new power plant, road, and railroad are planned. After revising the allotment of shares in the draft proposal, the agreement will be concluded.