All timeline events.

Publication of SOMO report ‘Mining Taxes’

The publication “Mining taxes” explains how the mining giant Rio Tinto, and its Canadian subsidiary Turquoise Hill Resources, avoided nearly $470 million in Canadian taxes by using mailbox companies in two tax havens, Luxembourg and the Netherlands.

The publication also shows how an abusive investment agreement covering the Oyu Tolgoi copper and gold mine has resulted in a $230 million tax revenue loss for Mongolia. All in all, Rio Tinto’s tax schemes lead to nearly $700 million tax revenue losses for Canada and Mongolia.

TRQ faces a USD 155 million Mongolian tax bill

Turquoise Hill Resources (TRQ) receives a USD 155 million tax bill from the Mongolian Tax Authority, as a result of a tax audit covering 2013 until 2015.

Rio Tinto / TRQ embark on new mining area

TRQ and Rio Tinto have acquired a license to start a drilling programme for fields unrelated to Oyu Tolgoi.

Entrée / Oyu Tolgoi Joint Venture construction begins

The Joint project includes the Hugo North Extension and Heruga deposits. Rio Tinto is managing the construction. [1]

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Presidential elections

Khaltmaagiin Battulga (Democratic party) is elected.

Rio Tinto responds to new regulation and taxes

Rio Tinto files a complaint against the IMF, which consequently delays the release of the first IMF bailout payments[1]

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Mongolia reverses its stance on the banking regulation

In response to Rio Tinto and IMF, the government of Mongolia retracts its banking regulation.

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Banking Regulation

Mongolia puts in place a new Banking regulation: obligation to use local bank services. The law requires all foreign multinationals to use local commercial banks to transfer funds in and out of the country. The law, announced in April, was meant to increase the country’s foreign currency reserves, while also strengthening the Mongolian banking sector.

IMF and Mongolia agree upon a 6th loan facility

The IMF agrees with Mongolia on a USD 434 million three year Extended Fund Facility (EFF), which is part of the larger USD 5.5 billion bailout package. This loan substantially increases Mongolian external debt [1], now estimated at USD 26 billion and more than twice its GDP of USD 11.2 billion. [2] As a condition for the loan, the government is required to implement budget reforms that include austerity measures, such as a wage freeze and personal income tax increase.[3] Government debt has ballooned from 30% of GDP in 2007 to over 90% in 2017.[4]

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Legislative elections

Mongolian People’s party wins the Mongolian State Great Khural elections with a landslide result: 46% of the votes.