Gerd Altmann via Pixabay CC0 Negotiations on OTIA continue
The impact of the global financial crisis on the Mongolian economy, weakening not only the Mongolian economy but also Mongolian negotiating power, forces the government back to the negotiating table.
All timeline events.
Tduuren via Wikimedia Commons CC 3.0Elections and demonstrations
The 2008 elections were accompanied by demonstrations, which were met with a four day State of Emergency, resulting in 4 dead and 300 imprisoned.
Tim kwee via Flickr CC2.0Global financial crisis
The 2008 financial crisis hits Mongolia as food prices go up and copper prices go down.
Bernd via Wikimedia CC2.5Initial Oyu Tolgoi Investment Agreement
The negotiation of an agreement results in a draft OTIA is approved by cabinet in June, but it is subsequently stalled by President Enkhbayar, who insists on 51% ownership of the mine. This turned into a condition for both political parties, MPRP and DP, by 2008, but is rejected by Ivanhoe and Rio Tinto.
Dennis Tang via Flickr CC2.0National Development Strategy
Millennium development goals-based comprehensive national development strategy of Mongolia[1]. Aspiration to be a middle-income country by 2021, with an industrialised knowledge based economy and high human development standards.
[1] http://siteresources.worldbank.org/INTMONGOLIA/Resources/NDS_DRAFT_ENG.pdf, retrieved 7 September 2018, see also Lander 2013.
Mark Agnor via ShutterstockIvanhoe Mines signs strategic partnership with Rio Tinto
The two mining corporations form a strategic partnership for the construction and operation of Oyu Tolgoi. [1] Rio Tinto negotiates an exit clause in case the investment agreement is not signed.
Peretz Partensky via Flickr CCNew Mining Law
This law allows the Mongolian government to “acquire up to 34% of ‘strategic mineral deposits that were discovered in privately financed explorations and up to 50% of publicly financed discoveries[1].” The royalty tax on extracted minerals is increased from 2,5% to 5% although amended almost yearly since (Hatcher 2016:479).
Costs by mining companies could be amortised for 5 years and losses deducted from tax for 2 years after incurring them.
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Carsten ten Brink via Flickr CC2.0Windfall Profits Tax passes
The Mongolian government passes a 68% “Windfall profits” tax, the highest in the world, on copper in excess of USD 2600/tonne and gold USD500/ounce[1]. The purpose of which is to increase valued added processing within Mongolia. Read more
Hangela via Pixabay CC0Ivanhoe Mines joins Entrée Gold
This given Ivanhoe mines access to another 40,000 hectares that lies next to its Oyu Tolgoi field[1].
Alex Banner via Pixabay CC0Ivanhoe Mines acquires 100% of Oyu Tolgoi
In 2002 Ivanhoe Mines acquires 98% from BHP and acquires the last 2% in November 2003[1]. Negotiations start with the Government of Mongolia. Read more