MP D.Zorigt, Minister for Minerals and Energy, answers questions on Oyutolgoi and Tavantolgoi.

How is the Oyutolgoi contract going on?

It has begun to be implemented and will take full effect by April 6.

What do you think about the reservations of the Professional Mineral Council about sections of the feasibility study?

I believe the company has accepted most of the demands of the Council. The investors have given fresh figures for the mine’s exploitable capacity and have agreed to leave Mongolia out of paying the 2% royalty fees to BHP Billiton. They have also accepted the council’s requirement to increase the factory output after five years by improving the water reserve. Some energy and infrastructure issues are still unresolved but they are not very important.

How has the matter of how much will be extracted been resolved?

The council wanted more exploration of the 19 million tons left out in the investors’ feasibility study. This can be done by revising the feasibility study. Something like this happened at Erdenet, too. At the start of operations there, Erdenet was said to have a reserve of 4 million tons which was gradually raised to 16 million tons. I don’t understand why people are claiming that the company deliberately calculated the reserve as lower than actual. There are people saying that the 19 million tons were being thrown away. The Council just asked for additional exploration, that’s all.

So is the issue being politicized again?

Politicians are politicians and will see things through their political prism. In matters such as the present one, it is better to let professional people do their job without interference. The Mineral Council consists of professionals and so they could make a professional study of the reserve. They raised question and have received clarification. There is no need to twist issues to gain political mileage. I wonder if those politicizing things really want the project to go ahead or not.  Even after all the professional work, and after approval by Parliament, it seems some are still keen to stop the project at all costs.  I don’t think that would serve the country’s interests. What need is there to politicize Oyutolgoi and Tavantolgoi, issues that are connected to the nation’s development and future?

Are you saying that there must not be any criticism from the political stand?

Politicians have had long to make their views known. Parliament has approved the agreement and it has been signed. Now only the technical work is left. The Mineral Council is working in a purely professional capacity. Why do politicians poke their nose there now?

What is the status of talks on Tavantolgoi?

We’ve met representatives of companies that are still interested. Some of them might prefer to form a consortium to work at Tavantolgoi. There are world famous companies among them. But first, the Government has to offer its terms.

Can you prepare these during the Spring session?