On 27 June 2025, a total of 89 Members of the State Great Hural (Parliament) of Mongolia, including MPs O. Batnairamdal, B. Bayarbaatar, A. Ariunzaya, B. Bat-Erdene, B. Uyanga, N. Naranbaatar, Ts. Munkhbat, Ts. Iderbat, S. Zulphar, J. Zoljargal, P. Sainzorig, M. Badamsuren, Dav. Tsogtbaatar, N. Altanshagai, and Kh. Jangabyl, submitted to Mr. D. Amarbayasgalan, Chairman of the State Great Hural, a draft resolution of the State Great Hural on the establishment of a temporary oversight committee.

Within the scope of the authority set forth in Article 9.1.12 of the Law on Minerals, the Government of Mongolia, by Resolution No. 170 of 2025, has established the boundary of the Oyu Tolgoi group deposit area.

As a result of this boundary determination, the license areas of the “Javkhlant” and “Shivee Tolgoi” mineral exploration and mining licenses, held by “Ontre” LLC—a company incorporated in Mongolia and a wholly owned subsidiary of “Ontre Resources Limited,” a company incorporated and registered under the laws of Canada—now fall within the legal framework governing strategically significant mineral deposits.

In the event that the “Javkhlant” and “Shivee Tolgoi” deposits are exploited, the constitutional requirement stating that "strategically significant mineral deposits shall be utilized in a manner ensuring that the natural wealth remains under the control of the people, and the majority of its benefits shall accrue to the people" must be fulfilled.

Furthermore, in accordance with the Law on Minerals, the State may, with respect to a strategically significant mineral deposit or its associated deposit, either:

-       acquire up to 34 percent of the equity interest in the project, equivalent to the amount of investment made by the license holder, free of charge, or

-       substitute this equity participation with a royalty payment based on the exploitation of the mineral resources

The initiators of the draft legislation presented these options as constitutionally and legally available for resolution by the State Great Hural (Parliament) within the scope of its authority.

When determining the percentage of state ownership in the strategic mineral license areas of the “Javkhlant” and “Shivee Tolgoi” deposits, it is essential that the process be conducted within the scope of the powers granted by law, with the participation and oversight of the State Great Hural (Parliament) of Mongolia, and in a transparent and open manner that reflects public input, in order to avoid repeating past mistakes.

Therefore, based on Article 28.1 of the Law on the State Great Hural of Mongolia and Article 32.1 of the Law on Parliamentary Oversight, and in connection with the upcoming review in 2025 of the interest rate on the Oyu Tolgoi project financing, a draft parliamentary resolution has been developed to establish a temporary oversight committee to conduct inspections and audits related to the protection of Mongolia’s interests and the enhancement of benefits derived from the exploitation of the Oyu Tolgoi group deposit.

The draft resolution specifies that the scope of the special inspection shall include reviewing the determination and valuation of the resources within the “Javkhlant” and “Shivee Tolgoi” mining license areas and assessing the basis for determining the percentage of state ownership. It also mandates oversight and review of the interest rate set forth in the “Amended and Restated Shareholder Agreement” of Oyu Tolgoi LLC, including any actions taken to reduce that rate in line with international market standards, as well as the implications and outcomes of such measures.