Cover Mongolia CEO comments on Oyu Tolgoi to Bloomberg News

 September 20th, 2016      140

Mongolia Dismisses Oyu Tolgoi Directors Behind Rio Negotiations

by Michael Kohn

  • Purging of government agencies becoming routine after electons
  • Directors helped unlock $4.4 billion in investment for mine

September 20, 2016 (Bloomberg) Three board members that helped steer the Oyu Tolgoi copper mine out of a long-standing dispute between the government of Mongolia and Rio Tinto Group have been dismissed.

Byambasaikhan Bayanjargal, Ganbold Davaadorj and Otgochuluu Chuluuntseren were released as board members on Friday, according to Solongo Sukhbaatar, a spokeswoman for Erdenes Mongol LLC, which holds state stakes in resource assets such as the Oyu Tolgoi mine.

Mongolia has seen many executive departures since the Mongolian People’s Party came to power in late June. The changes aren’t uncommon as the winning party consolidates power and finds loyal members to assume executive roles, said Munkhdul Badral, head of market intelligence firm Cover Mongolia.

“Public service is often the biggest victim of any political shift in Mongolia. It has become a ritual of a new ruling party to ‘cleanse’ the leaderships of government agencies and SOEs of the previous administration,’’ Badral said in an e-mail from Ulaanbaatar. “This time was no exception.’’

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Full article: https://www.bloomberg.com/news/articles/2016-09-20/mongolia-dismisses-oyu-tolgoi-directors-behind-rio-negotiations