Oyu Tolgoi Dubai Agreement


Overall, people conclude that the Dubai agreement was technically cancelled, as the resolution authorizing its installation was declared illegal. However, the final decision will be made after the case is referred by the Supreme Court and the Court of Arbitration, as the agreement contains such articles. If the recommendations are accepted, the government will have an obligation to implement them and ask Rio Tinto to renegotiate the Oyu Tolgoi agreements. This week`s trial appeared to highlight similar issues; According to reports, the Tribunal upheld allegations by a non-governmental organization that the implementation of the 2015 metro agreement had not been properly processed. The deal, which triggered an underground expansion that will cost more than $US 6 billion ($8.8 billion), is now the main source of tension between Rio and the Mongolian government, controlled by Saikhanbileg`s political opponents. The legal significance of this week`s Mongolian administrative court`s decision was not entirely clear on Wednesday, but the decision underscores the discontent in Mongolia over the 2015 extension agreement reached in a Dubai hotel by Rio chief Jean-Sebastien Jacques and former Mongolian Prime Minister Chimediin Saikhanbileg. The Mongolian Administrative Court (ACM) has overturned former Prime Minister Saikhanbileg Chimed 27, 99 and 123`s order on the 2015 Dubai Agreement. The paper deals with the costly and delayed underground extension of Oyu Tolgoi (OT). Darkhan Mongol Nogoon NGdel NGO had asked ACM to invalidate Saikhanbileg`s order for violation of the law. The court`s decision confirms that the agreement was signed illegally and that the Dubai agreement has become invalid. However, the Mongolian government has the right to appeal the ACM decision.

The 34% OT shareholder refused to provide concrete information on this matter. Among the Mongols, the Dubai agreement refers to an agreement on the way to the construction of the underground mine, signed by representatives of the government of Mongolia, Rio Tinto and Turquoise Hill Resources at a meeting in Dubai in May 2015. Oyu Tolgoi was launched in 2009 after a Mongolian investment agreement awarded its share and the rest to Ivanhoe Mines, Canada, now the Turquoise Hill resource controlled by Rio Tinto.