CABI­NET TO IM­PLE­MENT PAR­LIA­MENT’S DE­CI­SION ON ERDENET MIN­ING COR­PO­RA­TION

The UB Post - - POLITICS - By T.BAYARBAT

Cabi­net held an ir­reg­u­lar meet­ing on De­cem­ber 4 to dis­cuss the im­ple­men­ta­tion of Par­lia­ment’s Res­o­lu­tion No. 23 re­gard­ing Er­dene Min­ing Cor­po­ra­tion (EMC) own­er­ship dated Fe­bru­ary 2017.

After the meet­ing, the Cabi­net sec­re­tar­iat and min­is­ters of jus­tice and fi­nance held a press con­fer­ence about the Cabi­net de­ci­sion.

Min­is­ter of Fi­nance Ch.Khurel­baatar said, “Par­lia­ment ap­proved Res­o­lu­tion No. 23 to trans­fer the 49 per­cent stake [in EMC] of Mon­go­lian Cop­per Cor­po­ra­tion (MCC) LLC and Mon­gol­rost­sevet­ment LLC from pri­vate own­er­ship to state own­er­ship by ne­go­ti­at­ing the clos­ing of loans, div­i­dends, and prom­is­sory notes of Trade De­vel­op­ment Bank that were is­sued by Mon­gol Bank and the De­vel­op­ment Bank of Mon­go­lia as MCC had paid more than 400 mil­lion USD to buy the 49 per­cent stake in EMC through il­le­gally struc­tured sources and broke a num­ber of laws, and Cabi­net made a de­ci­sion to start im­ple­ment­ing the res­o­lu­tion on Jan­uary 4.”

The res­o­lu­tion states to give MCC full com­pen­sa­tion for their 49 per­cent stake in EMC.

In re­sponse to Cabi­net’s de­ci­sion, rep­re­sen­ta­tives from MCC held a press con­fer­ence on Jan­uary 5 stat­ing that although MCC bought 49 per­cent of EMC and Mon­gol­rost­sevet­ment LLC from the Gov­ern­ment of Rus­sia and Rus­sia’s state-owned Rostec Cor­po­ra­tion in 2016, Par­lia­ment voted to “na­tion­al­ize” MCC’s 49 per­cent. As MCC filed a law­suit against this de­ci­sion with the court, the Supreme Court ruled on De­cem­ber 7 against the gov­ern­ment’s at­tempt to take the 49 per­cent.

Chair­man of MMC’s board M.Munkhbaatar said, “De­spite the Supreme Court’s rul­ing, Cabi­net made a de­ci­sion against it. This de­ci­sion led to a claim by U.Khurel­sukh’s Cabi­net that Cabi­net will ful­fill Par­lia­ment’s Res­o­lu­tion No. 23 within its first 100 days in of­fice.”

CEO of MMC Ts.Purevtu­vshin noted, “MMC met with rep­re­sen­ta­tives of the new gov­ern­ment twice. In the first meet­ing, MMC in­tro­duced the gov­ern­ment to its op­er­a­tion, and in the sec­ond meet­ing, MMC pre­sented the gov­ern­ment with in­for­ma­tion and doc­u­ments it wanted, but there was no ne­go­ti­a­tion be­tween the gov­ern­ment and MMC.”

Erdenet Min­ing Cor­po­ra­tion of­fice in Erdenet City

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