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Miners’ group threatens strike if Oyu Tolgoi agreement delayed by Parliament PDF Print E-mail
Wednesday, 15 August 2007

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A group representing Mongolian miners is threatening to close down mining operations throughout the country unless, among other demands, the Parliament agrees to allow the enormous Oyu Tolgoi agreement to be implemented immediately. 

In a letter to Parliament dated August 13, the mining group, called Participants Of The “Mining: Forward Or Backward Grand Gathering,” submitted a list of demands to the Mongolian lawmakers. 

Quoting from the letter, the miners stated: “At its 85th anniversary the Mining sector of Mongolia is at the brink of a deep crisis due to short-sighted policies of Mongolian politicians. The generations of miners who have been the face of this country and the foundation for development are demanding the following: 

1. Free the price of coal supplied to domestic power plants

2. Invalidate the devastating 68% Windfall Tax Law

3. Immediately discuss and approve the “Oyu Tolgoi” and “Tavan Tolgoi” project Investment Agreements

4. Establish a state central administrative organization in charge of geology and mining policy implementation” 

The mining group threatens a general strike on September 1st if their demands are not met. 

Additionally, the miners have announced they will stage “warning strikes” at the following mines: Baganuur on August 13, Sharyn Gol on August 14, Shivee Ovoo on August 15, and Aduun Chuluu on August 16. 

These demands from the miners’ group follows Parliament’s delaying the agreement between Mongolia and Ivanhoe Mines to begin mining gold and copper at Oyu Tolgoi. Though the agreement took five years to negotiate, members of Parliament have questioned its legality, the compensation Mongolia will receive and the length of time the contract awards mining rights to Ivanhoe. 

There has yet to be a response from either the government or Parliament regarding the threatened strike from miners.

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