Oyu Tolgoi Shareholders Agreement

26 nov. Oyu Tolgoi Shareholders Agreement

The Oyu Tolgoi shareholders agreement is a topic that has been making headlines in the mining industry recently. This agreement pertains to the Oyu Tolgoi mine, a copper and gold mine located in the Gobi desert of Mongolia. The mine is one of the largest copper deposits in the world and is jointly owned by the Government of Mongolia and Rio Tinto, a multinational metals and mining company.

The shareholders agreement was first signed in 2009 and revised in 2011. The agreement outlines the rights and obligations of the parties involved in the joint venture, including the sharing of profits and the management of the mine.

Recently, there has been controversy surrounding the agreement, with the Government of Mongolia seeking to renegotiate the terms of the agreement. In 2018, the Mongolian government passed a law that required state-owned enterprises to own at least 34% of large mining projects. As a result, the government has been seeking to increase its stake in the Oyu Tolgoi mine from its current 34% to 51%, which would give it greater control over the operation of the mine.

Rio Tinto has contested this move, arguing that it would violate the shareholders agreement and could potentially harm the development of the mine. The two parties have been negotiating over these issues for several years now, and there is no clear resolution in sight.

The Oyu Tolgoi mine is a critical source of revenue for Mongolia, with copper and gold exports accounting for over 80% of the country’s total exports. The mine is also an important source of jobs and economic development in the region. However, the dispute over the shareholders agreement has raised concerns over the future of the mine and the broader implications for foreign investment in Mongolia.

In conclusion, the Oyu Tolgoi shareholders agreement is a complex issue that highlights the challenges of managing joint ventures in the mining industry. The dispute between the Government of Mongolia and Rio Tinto is ongoing, and it remains to be seen how it will be resolved. However, it is clear that the outcome will have significant implications for the development of the Oyu Tolgoi mine and for foreign investment in Mongolia as a whole.