On Monday, the Cabinet decided that 15 billion MNT should be paid by SouthGobi Resources in 2016, and 7.5 billion MNT in 2017 to settle a tax evasion penalty imposed by the Court of Mongolia in January 2015. A 35.3 billion MNT fine was issued to SouthGobi after the company was found financially liable in a tax evasion case resulting in guilty verdicts for three former SouthGobi employees. SouthGobi Resources has proposed conducting mining activities at Erdenes Tavan Tolgoi’s Tavan Tolgoi deposit with their own financing and personnel, and paying the government 20.3 billion MNT. The Cabinet instructed Erdenes Tavan Tolgoi to establish an agreement with SouthGobi. SouthGobi Resources subsidiary SouthGobi Sands says it will be responsible for all expenses related to its operations at Tavan Tolgoi, including transportation, salaries, social insurance, accommodations, food, electricity, and technical maintenance. The sides agreed not to draw on resources from Erdenes Tavan Tolgoi. The Cabinet’s members believe that the settlement decision will not result in any financial losses for Mongolia, and will help in fully recovering the fines imposed by the court, as well as maintain the operations of Erdenes Tavan Tolgoi without interruption.