Best practices at Boroo Mine will continue to be implemented

OZD Capital, based in Brisbane, Australia, through its subsidiary OZD Asia, has acquired the Mongolian business unit, including the Boroo Gold Mine and processing facility and the Gatsuurt Gold Project from Centerra Gold Inc. based in Canada. In relation to the acquisition, we have obtained the following interview from Mr. Rodney Chanin, Vice Director of Centerra Gold Mongolia LLC.

 

What company did acquire your company?

 

OZD Capital focuses on emerging market’s mining and metal assets by acquiring, financing and operating. The company invests on behalf of its investors from Australia, Singapore and Mongolia. In international mining industry business practice, license transfer and acquisition are usual transactions. It is worth mentioning that the Western company acquired Boroo Gold LLC and Centerra Gold Mongolia LLC according to such international practice. It should be also noted that the company is not a Chinese company, but it is a Western-invested company with Mongolian participation.

 

The Boroo Gold Mine was the first Western-invested mine in Mongolia. We are proud to have introduced best HSE practices into the Mongolian mining industry and have been the operational model among our peers in terms of environmental protection and promotion of responsible mining practices. OZD stated that they would work to become a leading gold Mongolian gold producer using the existing best practices at the Boroo Mine.

 

There is a lot of news, both bad and good news about the Boroo Mine. One example is that Boroo’s gold is alleged to have been mined out and exported tax-free within just five years. However, Boroo Gold has been named as the best taxpayer of Mongolia on several occasions. How much was actually paid in taxes?

 

From 2007-2015, the company was honoured as the best taxpayer of Mongolia each year. The Mongolian Tax Administration names best taxpayers based on the amount of taxes they paid to the state budget. It is clear to everyone when, how and how much was paid by Boroo Gold in taxes. This information is available to everybody on request. Although the company has not undertaken any production activities for many years, it is still in the process of performing environmental reclamation as a responsible mining company.

 

What CSR projects, except for taxes, did your company implement as a good corporate citizen to promote sustainable development of local communities? I heard that your company built the 6-storey annex building of the First Maternity Hospital in UB.

 

Centerra Gold Mongolia LLC contributed benefits totaling MNT 1.1 trillion to Mongolia during the life of the Boroo Mine. Out of this amount, MNT 8.3 billion was contributed to Bayangol and Mandal soums of Selenge province.

 

It has been 5 years since the annex building of the First Maternity Hospital in Ulaanbaatar was built and put into commissioning with the funding of MNT 10 billion from the company in 2013. The annex building – a fully-equipped, 6-storey building with 100 beds for mothers and 50 beds for infants – is the first hospital building, which was constructed with funding from a foreign-invested mining company as part of its CSR project for the Mongolian health sector. It is one of our major projects that benefited Mongolia.

As said above, the company contributed MNT 8.3 billion in Mandal and Bayangol soums and MNT 3 billion in Selenge province. Thanks to these contributions of the company, numerous projects have been successfully implemented in local communities. They include the 450-seat theater of the ensemble Mungun Kharaa, the local government building, motor roads, street lighting and CCTV cameras and sports complex in Mandal soum; the Governor’s Office building, sanatorium for the elderly and disabled people, fully-equipped dental office and micro finance fund project in Bayangol soum; and park at the Partisan Square, Children’s Center, the welcome gate and Gerelt complex in Selenge province.

 

It has been a long time since the Boroo Gold Mine ceased its production. However, the company, as a responsible miner, has been continuously performing its environmental reclamation to date. I am confident that the new owner or Western-invested OZD Capital will continue to perform the environmental reclamation program and will be a champion in promoting responsible mining practices.