IA info One recently made assertion in the press stated that Investment Agreement (IA) is not mutually beneficial.
Oyu Tolgoi’s Investment Agreement is mutually beneficial. Moreover Mongolia benefits most thanks to this agreement. In other words, Mongolia receives up to 71% of the cash flow that comes through Oyu Tolgoi project. International Monetary Fund report, which was released in 2011, indicates this percentage. Thanks to stability, assured by Investment Agreement, 6 billion dollar investment is made to Mongolia and it also had received 900 billion tugrik in taxes.
Reports also said the Investment Agreement is not in compliance with Constitution.
Investment Agreement was made on the basis of Resolution #57. Mongolian Government and National Security Council reaffirmed the Investment Agreement is made in compliance with Parliamentary Resolution #57 and the Mongolian Constitution in October 2011.
False claim was made about Oyu Tolgoi’s Mongolian employees don’t match with the quota required by the Investment Agreement.
Investment Agreement indicates Mongolian employees must be up to 60% of OT’s entire work force during the construction period. We are doing better than what was expected. 74.2% or 11,956 of Oyu Tolgoi employees are Mongolians.
Clause 8.4 in the Investment Agreement requires 90% of Oyu Tolgoi LLC employees must be Mongolians once the operation starts and we are confident and happy to fulfill this duty. We are implementing 168 billion dollar vocational training initiative. With this investment, four vocational training centers are being built and three being renovated, 1200 teachers are being trained and 3300 students are being taught new skills. Moreover, we believe hundreds of students who are majoring in various fields in Mongolian and international colleges and universities with Oyu Tolgoi scholarships would show valuable contribution to the development of Mongolia.