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Parliament Opens Oyu Tolgoi Hearings as Tax Officials and Executives Detail Financing and Payments

The review centers on shareholder loan costs to determine whether the project’s benefits match Mongolia’s expectations.

Overview

  • The temporary oversight committee began multi‑day public hearings on December 10 to scrutinize the Investment and Shareholders’ agreements, summoning 109 witnesses with 84 in attendance.
  • Testimony focused on shareholder loan pricing set at a floating benchmark plus 6.5%, with figures indicating an effective average near 8% over 15 years and rates exceeding 10% in recent years after the shift from LIBOR to SOFR.
  • The Tax Authority reported Oyu Tolgoi paid a cumulative 6.4 trillion MNT in taxes, fees and charges from 2001 through September 5, 2025.
  • Oyu Tolgoi’s chief executive said the mine became cash‑flow positive in 2025 after heavy capital spending, while high debt is driving reviews of refinancing options and dividend timing.
  • Lawmakers heard technical evidence on groundwater management and high process‑water reuse near 86.5%, and exchanges flared over responsibility for delivering a domestic power source; separately, the government ordered year‑end budget savings and a committee backed advancing debate on repealing a 2% real‑estate sales tax.