Oyu Tolgoi LLC Executive Director Fired Following Rio Dispute

August 20 09:50 2013 Print This Article

Bloomberg 2013-08-19

By Michael Kohn
The executive director for Erdenes
Oyu Tolgoi LLC, Tserenbat Sedvanchig, has been fired after nine
months at the state-owned company, a period marked by disputes
over mine costs and funding with partner Rio Tinto Group.
He was replaced by former deputy prime minister and member
of Parliament Davaadorj Ganbold, 56, at a board meeting today,
the national Montsame News Agency reported on its website.
The company known as Erdenes OT controls 34 percent of the
$6.6 billion Oyu Tolgoi copper and gold mine. Rio Tinto controls
66 percent through its Turquoise Hill unit. Last week, 1,700
workers were let go as the partners failed to agree on
operations on the $5 billion underground portion of the mine.
“The project should work for both sides, Mongolia and Rio
Tinto. Something should be done to find consensus,” Ganbold
said today in an interview. “It’s a marriage between the two
side and I will try to make it work, to push the project
forward.”
Sedvanchig last month told Rio Tinto that the Mongolian
Parliament is responsible for approving a multi-billion dollar
package to finance the second stage expansion of the mine. The
news, announced in a July 29 press release by Rio Tinto,
triggered a 20 percent drop in the share price of Turquoise Hill
Resources.
Mongolia’s Prime Minister Norovyn Altankhuyag had to step
in and overrule Sedvanchig, saying the decision to approve
project financing could be made by the board of Oyu Tolgoi LLC.
Ganbold “may be an ideal candidate to do what needs to be
done as it relates to getting OT back on track,” Nick Cousyn,
Chief Operating Officer at brokerage BDSec, wrote in a note to
clients.

For Related News and Information:
Mongolia News: NI MONGOL <GO>

–Editor: Peter Langan

To contact the reporter on this story:
Michael Kohn in Ulaanbaatar at +65-6212-1000 or
mkohn5@bloomberg.net

To contact the editor responsible for this story:
Andrew Hobbs at +61-2-9777-8642 or
ahobbs4@bloomberg.net

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Saranchimeg Enkhee
Saranchimeg Enkhee

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