Turquoise Hill Resources Ltd. TRQ

Lost in Translation

[Bushwacker3]

GoM's version of $150 M tax dispute and power plant plan.

https://medee.mn/main.php?eid=112431

The English translation below....

Today, the Chief of the Government of Mongolia G.Zandanshatar made information on the Cabinet meeting. "Since January this year, we have made many talks with Oyu Tolgoi and Rio Tinto Group to improve Oyu Tolgoi contracts and transactions. As a result of long-standing dialogue, we have agreed to sign a Memorandum of Understanding with five basic principles to reduce the burden on the economy and the interest rate burden on our side. As a result, the Oyu Tolgoi agreement creates a baseline for greater profitability. The results will be achieved by lowering interest rates.

It is financed by 34 percent shareholding from Oyu Tolgoi. Financing contract was high. The principle of reducing this high interest rate reaches an agreement. It is not yet agreed on how to reduce it.

There was a dispute that Oyu Tolgoi had to take power from Mongolia. Oyu Tolgoi imports about 150 million US dollars of electricity. Therefore, the demand for electricity has to be supplied locally. Nowadays, we have reached the principle of building power plants in Tavantolgoi and providing domestic sources of energy with other reliable sources.

There was also a problem with tax disputes based on the investment agreement and the Dubai plan. $ 35 million tax is paid. However, arbitration will be solved because of the disagreement on the total tax rates. A total of $ 150 million tax issues are being addressed. In this regard we will work with the Parliament Working Group to invite foreign specialists to the Government. "

-What's wrong?

The implementation of the Government Action Plan for 2016-2020, and the implementation of the general social and economic development agenda of Mongolia in 2018. "To review the implementation of the Government Action Plan, all the ministries' reports were made and decisions were made to further strengthen the ministry's implementation.

As of the first half of 2011, the Government's main economic development has been implemented at 50.9 percent. In the first half of 2012, the Government Action Program was implemented at 47.9 percent. There are pressing financial problems to implement the program. The full program needs 67.6 trillion MNT. Therefore, we are working on the key issues that need to be done.

The implementation of the Government Action Plan is good. Economic growth reached 6.3 percent. The combined fiscal balance surplus was 291.3 billion MNT. Inflation is at 8 percent, which is the economic growth. The unemployment rate dropped to 7.5 percent. Foreign direct investment has increased by $ 879 million. Mongolia's foreign debt reached 21.1 trillion MNT. Construction, construction and mining activities are intensifying. As a result of the visit of the Prime Minister of China, the penetration of border ports has improved and coal exports doubled.

Coal exports account for 40 percent of total exports. By the first half of the year, $ 1.4 billion was exported. At the end of the year exports $ 4 billion of coal. Each ministry will take every action to intensify the implementation of delays. The government added salaries to some state officials. Under the "Cashmere" program, herders are separated from their debt.

The livelihood of herders has increased because of the high price of wool and cashmere. We will export meat now. Increased fuel prices are due to factors not dependent on us. The price of the world is growing, so we can not. As the economy improves, mortgage lending will expand. We are working to pay the debt over five years. So, the economy is not going to get any better. "

 T. RUKAN


Looks like they want their  34% of OT loan with interest rate lowered.  !!!????
Power plant located at Tavan Tolgoi   ????
Paying back the GOM loan in 5 Years ????
Willing to go to internationL arbitration.   ????
some Mongolian internet  comment suggest getting the 34%  for free?????
shaking my head in amazement with their Memo of Understanding !!!