CABINET TO IMPLEMENT PARLIAMENT’S DECISION ON ERDENET MINING CORPORATION
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