Zorigt Sees Investors Agreeing to Work as Contract Miners

BCM newswire

Answering questions at a media conference, Minister for Minerals and Energy D.Zorigt said what Prime Minister S.Batbold has suggested about the Tavan Tolgoi deposit basically means that the State will keep 100 percent of the license without selling any share of this, and foreign companies will make contracts with Erdenes MGL to mine coal.

This way of working with private companies will be new in Mongolia, but is followed elsewhere in the world. He clarified that the Government's ownership will cover the area for which the license is held by Erdenes MGL, and exclude the few licenses already issued to companies such as Energy Resource.

Asked if companies would be willing to operate mines without owning them, Mr. Zorigt said once the terms were finalized, he was "sure there will be companies ready to accept them". He clarified the Government would not be "renting out" the deposit, but would ask "companies to operate under a contract to mine coal, on payment of fees". The details are being worked out and the changed situation may lead to "either an increase or a decrease" in the present number of 11 companies or consortiums who have expressed interest in Tavan Tolgoi.

"There may be one or several operators," Mr. Zorigt said, adding that anyone "holding operation rights and making large investments" would prefer to have control over the management and over the mining and selling of the coal. The Government will accept this, but "we will of course monitor and oversee the work".

Article Source

The source of information was obtained from Mongolian language newspapers news.mn and was included in the news highlights of BCM Newswire issue 105.  BCM Newswire is sent once a week and highlights leading articles relating to business, investments, & mines in Mongolia.  BCM Newswire is sent to members of Business Council of Mongolia (BCM) and is made available to public after a month at bcmongolia.org.

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