r.Terbishdagva, member of Parliament and Head of Working Group set up to investigate Oyu Tolgoi Investment Agreement, briefed journalists on Tuesday (02 April, 2019). He underlined that “Many corrections and improvements shall be made to the Oyu Tolgoi investment agreement. Most of the working group members agreed to void the underground mine development agreement”. According to him eight of the 12 members of the working group had agreed to void the agreement and this has generated unpleasant activity within the mining sector. 80 percent of the project activity, which is the main source of foreign investment flow to Mongolia, is an integral part of the underground mine development and there is a growing speculation among Mongolians that the investment agreement, dubbed Dubai agreement, could be held up.
But after this announcement (as of 02 April, 2019), there has been no immediate effect on stock price of the Turquoise Hill Resources Ltd, trading at the New York Stock Exchange.
Currently, (as of 3 April, 2019) stock price of the Turquoise Hill Resources went up to 1.69 USD after closing at 1.65 USD on the previous day. Stock investors and analysts consider that this stock is on the go as sales volume increases.
How the stock market will further react to this negative information about the largest mining project in Mongolia shall catch attention of investors, businesspeople and citizens alike. It shall be mentioned that Mr.Terbishdagva, Head of the Working Group said that “I believe members of the Parliament and members of the Standing Committee on Economy shall be fully introduced to our report and make a wise decision. In my opinion, the agreement shall be amended and improved”.
Instability, surrounding the Oyu Tolgoi project, a main pillar of the Mongolian mining sector and the economy is not only a problem facing the Mongolian mining sector. In connection with this, mining companies agreed to start “Non-stop 24 hours” online movement starting from yesterday (03 April, 2019).
If all mining companies completely stop their operation for 24 hours, the Mongolian economy shall lose 8.1 trillion MNT within a day and 67 thousand MNT in a single second. Besides, 70887 pensioners could not receive their monthly pensions and 37720 civil servants would lose one day's payment, says event organizers.
If you imagine that the Mongolian mining sectors stop for 24 hours, you will understand that if not you, our reader, someone else (50 families) might squander their opportunity to purchase an apartment.
Source: talktraders.com, bloomberg.com, Mongolian Mining Association