Turquoise Hill happy with Mongolian gov't resolution
2019-12-11 07:17 ET - News Release
Mr. Ulf Quellmann reports
TURQUOISE HILL (TRQ) ACKNOWLEDGES THE RESOLUTION PUT FORWARD BY THE PARLIAMENTARY WORKING GROUP (PWG), AND PASSED UNANIMOUSLY BY THE PARLIAMENT OF MONGOLIA
In March 2018, the speaker of the Mongolian parliament appointed a parliamentary working group to review the implementation of Turquoise Hill Resources Ltd.'s investment agreement signed on Oct. 6, 2009. The mandate was subsequently expanded to include the Amended & Restated Shareholder Agreement signed June 8, 2011, and the Oyu Tolgoi Underground Mine Development and Financing Plan, signed on May 18, 2015.
Upon completion of the PWG review and its report, a Resolution was submitted to the Economic Standing Committee, and subsequently passed in a plenary session of the Parliament of Mongolia on November 21 st.
The Resolution was published on December 6 th and includes the following measures:
dot "{&#A A ; …}take comprehensive measures to improve the implementation of the Investment Agreement signed on October 6, 2009{&#A A ; …}.and the Amended & Restated Shareholder Agreement signed June 8, 2011"
dot "{&#A A ; …}improve Oyu Tolgoi Underground Mine Development and Financing Plan{&#A A ; …}"
dot "Explore and resolve options to have a product sharing arrangement or swap Mongolia's equity holding of 34 per cent for a special royalty..."
"We believe that the Resolution reflects Mongolia's commitment to work together to further support the development of the underground mine, and will serve as the basis of future discussions between the Government of Mongolia, Rio Tinto and Turquoise Hill Resources in relation to the Oyu Tolgoi project," stated Ulf Quellmann, Chief Executive Officer of Turquoise Hill. "Adherence to the key principles of our three foundational agreements remains of critical importance as this has already allowed for the development of the Oyu Tolgoi mine in a manner that has given rise to significant long-term benefits to Mongolia and it will continue to do so. However, we are also mindful that further dialogue amongst the stakeholders is required to ensure Oyu Tolgoi reaches its full potential. We remain firmly committed to exploring ways to deliver even greater benefits from Oyu Tolgoi to all shareholders."
