You can download the Investment Agreement summary here.
Mining the copper and gold of South Gobi requires billions of dollars from investors and the creation of a new company, Oyu Tolgoi LLC. Since the minerals are 100 per cent owned by the Mongolian people, Oyu Tolgoi must first pay taxes, royalties and fees for the copper, gold and molybdenum produced by the mine. Shareholders in the company, including the Mongolian government, then receive dividends based on the profits derived from sales.
The Mongolian Minerals Law provides for Investment Agreements on projects that will span many years. The Oyu Tolgoi Investment Agreement describes the rights and responsibilities of all parties for the entire life of the project. For the Mongolian Government, the Agreement guarantees taxes, royalties, fees, shareholding, environmental standards as well as requirements for employment and social investments. For investors, the Agreement creates a stable and predictable legal structure to plan the business and invest the trillions of MNT (billions of dollars) required to develop the mine and then fund the large expansion programme up to 2020.
After six years of negotiations and a public review by the Parliament, the Oyu Tolgoi Investment Agreement was signed on 6 October, 2009. It is the basis on which another 7.8 trillion MNT (US$6.2 billion) will be invested in the mine. Under the Agreement:
Other requirements of the Investment Agreement include: