Mongolian Parliament Approves New OT Deal"Ulaanbaatar /MONTSAME/. At the plenary meeting of the State Great Khural (Parliament) today, December 30, the resolution on Measures to be taken to ensure the benefits to Mongolia from Oyu Tolgoi gold-copper mine has been approved.
Following measures reflected in the resolution:
- To write off Mongolia's USD 2.3 billion-debt for its share (34 percent) in the Oyu Tolgoi copper-gold project.
- To terminate the Oyu Tolgoi Underground Mine Development and Financing Plan, known as ‘Dubai Agreement’ and conduct an independent audit into the financing of the project's underground expansion;
- The costs required until the first half of 2023, when the underground mine is commissioned, shall be covered by the investors, not incurring additional debts to Erdenes Oyu Tolgoi LLC;
- To supply electricity for Oyu Tolgoi project from the energy grid of Mongolia
- To ensure the implementation of tax acts
The majority of MPs who attended the plenary session have supported two proposals: to not incur additional debts to Erdenes Oyu Tolgoi LLC, and not receive additional loan from shareholders of Oyu Tolgoi LLC and third parties. The Temporary committee in charge of taking control on the implementation of the parliamentary resolution No.92 dated November 21, 2019, on ‘Ensuring the interests of Mongolia in the exploitation of the Oyu Tolgoi gold-copper mine’, has submitted the two proposals.
The draft resolution has been approved with the support of 74.1 percent of the attended MPs."
At some point the market is going to figure out the projected earnings for ETG from HNE Lift 1 alone at today or higher copper and gold prices should for several years be pretty close to or in excess of the current market cap. It's just a few years away ... then comes production decisions for concentrator 3xpansio , Lift 2 HNE, Heruga, more exploration targets on the JV and 100% ground ... given Rio's appetite to pour more benefits out for the Mongolians, do you think they won't be buying out ETG before it gets to pricey? I'm thinking both TRQ and ETG get folded-in and really wonder if Rio and the Mongolians know there is something more to be revealed in respect of value at OT - like a higher grade shallow target perhaps? Cha-Ching if it is so. Slight delay and Cha-Ching if not.
Leg up in 2022, finally?
cg