Source: Undesnii Shuudan                     Date: 09 July, 2010

Minister of Minerals and Energy D.Zorigt has revealed that altogether USD758 million is likely to be invested in the Oyu Tolgoi project this year. This does not include the USD400 million worth of work for which domestic companies will be bidding.  Mr. Zorigt was testifying before the Standing Committee on the Economy on behalf of the group of Ministers, comprising himself, Minister of Finance S.Bayartsogt, and Minister of Nature, Environment, and Tourism L.Gansukh that is charged by Parliament with monitoring implementation of the project. He conceded that delay in “our preparatory work” had resulted in failure to invest USD47 million at the time planned.

The number of Mongolian employees at Oyu Tolgoi was 300 in August, 2009 and has now reached 2,250. This is 70% of the workforce, even more than the 60% pledged in the agreement, he said. A number of “indirect” employment positions have also been created.

He confirmed speculation that a new state-owned company called Erdenes Tavantolgoi is proposed to be set up to hold 100% share of the Tavan Tolgoi deposit. Citizens will be allocated 10% of these shares free, while another 10% will be sold at a special price to all domestic companies registered before June 30, 2010. Another 30% will be traded on domestic and foreign stock exchanges.