The Ministry of Economic and Development of Mongolia announced they’re starting talks to make Kharmagtai a strategic deposit and take 34% of the project. According to the Sovereign Wealth Fund law passed last April, the government has a right to own 34% stake in strategic mines without any compensation.
Kharmagtai has been in and out of talks about strategic deposit discussions for years, but with the latest reserve calculations and economic outlook, it’s back on the table now. Here is the Cabinet member’s interview about the proposal to make Kharmagtai a strategic deposits - https://www.facebook.com/watch/?v=564714672774027 Tons of comments and video interviews have been around. At least two of cabinet members and several parliament members have been commented on this, showing their support.
Xanadu’s current Kharmagtai reserve calculations aren’t registered in Mongolia’s Mineral Resource Agency. Big difference between the state data and Xanadu’s numbers. And it triggers a lot of tension.
Because of this, the lack of trust has really kicked in now. With all the public anger and media covers, looks like the government is reviewing the Kharmagtai reserve calculation as well.
https://www.facebook.com/watch/?v=8647502898664061 - Here is Mongolian Minining Ministry’s interview on this issue. Also News.mn - one of Mongolia’s most respected news agencies – said that Xanadu is rushing to sell Kharmagtai at a discount before the strategic deposit talks. https://news.mn/r/2762120/ - Check this link here for the News’ article.
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