B.YERENTEI

Foreigners
mock Mongolians as paupers sitting on gold. Like them we wanted to mobilize our
gold and become wealthy, so we started utilizing the Oyutolgoi Mine. But we
lost it to the notorious gangster in the world Robert Friedland, the founder of
Ivanhoe Mines.

Last year the parliament passed a new Law on Concessions. International
open bid competition on highway building concession was announced. The law was
new so was the concession bid. Then that Mr. Friedland appeared. When this
person who has been ignoring international laws and regulations comes up, the
Mongolian law becomes difficult to be fully implemented.

Following the approved Concession Law since March 1^st, 2010, a
legal environment opened up for wealthy companies to invest in the necessary
auto road in Mongolia, recover its cost and get income through road toll and
then to transfer the road to the state property of Mongolia after few
years. 

State Property Committee and the Ministry of Road, Transportation and
Urban Development jointly announced the open-bid to grant concession with
“Build-Use-Transfer” model to build 57 km long paved road in the direction of
Nariinsukhait-Shiveekhuren in Gurvantest soum, Umnugobi Province.
In the open bid Mongolian company, Monroad Co., Mongolian-Hong Kong Joint
Company Channel Gold Limited, and subsidiary company of Mr. Friedland’s Ivanhoe
Mines, South Gobi Sands Company participated. The South Gobi Sands went out
from the first selection stage for not meeting the bid requirements and the two
other companies were selected for the next stage.    

After the selection, there was rumor at People’s Party blaming the State Property
Committee for removing Mr. Friedland’s company. 
The South Gobi Sands was not supposed to be eliminated from the first
stage. On the contrary, it was expected to win in the bid according to the
prior agreement. After it wins the bid, they were believed to raise fund
together with Monnis Company and the raised fund was supposed to be used for
the next year’s election campaign of People’s Party. It was plotted by
Sü.Batbold, Su.Batbold and Ch.Khurelbaatar.

The second round of the open bid was organized in June and according to
the law, Monroad as well as Channel Gold Limited Company arrived at the State
Property Committee’s Building to submit their materials. However, the officials
from the South Gobi Sands that has been expelled from the first stage suddenly
burst through and boldly said “we will participate in the competition and will
give our materials. Who is the State Property Committee representative? We will
talk to him” and openly acted in the open event. This proves that the rumor of
Aurag Deposit of People’s Party is true. Then it was completely confirmed by
the next action of the Concession Committee—they received the materials of
South Gobi Sands Company. However, their materials were incomplete and there
was no way left but to expel the South Gobi Sands again from the competition.
Their hope failed. However, the Mongolian boy’s dream was not yet to be
accomplished and the selection committee, composed of the officials from the
State Property Committee and the Committee of National Development and
Innovation, expelled the Mongolian Company, Monroad as well as Channel Gold
Limited Company and made the whole bid to grant concession ineffective in order
to race South Gobi Sands Company one more time. After that the committee
announced a new Limited Bid Competition with 15 day period and sent invitation
to Monroad Company and Channel Gold Limited Company as well as to subsidiary
company of Mr. Robert Friedland’s Ivanhoe Mines, South Gobi Sands that has been
eliminated for two times already.     

The deadline to received bid proposal is July 18^th, the
shortlist release date is August 1^st, and date to sign on the
concession contract is August 15.

I understand that after Naadam Holiday, a procedure to determine whether
Mongolian Company Monroad will get the concession rights according to the law
or South Gobi Sands of Robert Friedland with “Green visa” from People’s Party
that owns 31 exploration licenses and three exploitation licenses in Umnugobi Province.

There is a Mongolian saying that whatever uttered comes true. I wish all
of you from the Director of State Property Committee to the bid committee
members to have a happy Naadam. You have been celebrating Naadam without any
support from Mr. Robert Friedland and hope you will have nice celebration this
year as well.