Source: Centre for Research on Multinational Corporations (SOMO) – Oyu Tolgoi Watch (OT Watch)
New Research Shows Mongolia Forced to Give Up Control Over Natural Resources
Leaked documents show hijacking of Mongolian development agenda
(Amsterdam,
19 February 2020)
New
research by SOMO and OT Watch shows how one of the world’s largest
copper mine, Oyu Tolgoi in Mongolia, was negotiated at the expense of
the Mongolian people. Leaked documents expose how mining companies Rio
Tinto and Turquoise Hill Resources, the US embassy, the IMF and the
World Bank compelled the Mongolian government into offering generous
corporate incentives that leave the country with debt, environmental
damage and a loss of democratic control over their natural resources.
“Just as the economy was beginning to stabilise and grow, the
World Bank decided to push the Mongolian economy towards growth based on
mineral extraction. This made Mongolia fully dependent on a single
industry and a single market,” says Sukhgerel Dugersuren of OT Watch.
Members of parliament and civil society organizations have questioned
the Oyu Tolgoi Investment agreement since negotiations began in 2003.
In November 2019, the Mongolian parliament unanimously passed a
resolution instructing the Mongolian government to review and take
measures to ensure that all the agreements related to the Oyu Tolgoi
Project comply with the country’s legislation for the benefit of the
Mongolian people.
The report ‘Undermining Mongolia’ analyses how the choreography of
political, corporate and financial actors around a mining agreement
shape Mongolia’s politics and legislation. SOMO and OT Watch argue that
this is not a unique case but representative for mineral rich countries’
development trajectory hijacked by corporate interests of the global
extractives industry.
Rhodante Ahlers of SOMO says,
“Globally legitimized looting by multinationals must stop. ‘Good
governance’ and ‘rule of law’ need to be stripped from corporate
interest and profit seeking and redefined towards a healthy planet for
the benefit of all.”
This report is a sequel to the 2018 report
Mining Taxes that described Rio Tinto’s tax schemes that lead to nearly $700 million tax revenue losses for Canada and Mongolia.
Download the report "Undermining Mongolia: Corporate hold over development trajectory"
here.
About SOMO
The Centre for Research on Multinational Corporations (SOMO) is a
critical, independent, not-for-profit knowledge centre on
multinationals. Since 1973 we have investigated multinational
corporations and the impact of their activities on people and the
environment. We provide custom-made services (research, consulting and
training) to non-profit organisations and the public sector. We
strengthen collaboration between civil society organisations through our
worldwide network. In these three ways, we contribute to social,
environmental and economic sustainability.
www.somo.nl
About OT Watch
Oyu Tolgoi Watch (OT Watch) is a non-profit, nongovernmental
organization established in 2009 to monitor Oyu Tolgoi project’s
compliance with the international environmental and human rights norms
and standards. OT Watch was established by a group of CSOs which have
actively engaged with government and protested against signing the
unfair investment agreement. Since its establishment, OT Watch has been
working in partnership with national, international civil society
networks in advocating for fair and accountable mining and investment
practices respectful of human rights in the development process.
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