The Mongolian Government has agreed to a $153.5m settlement agreement with Mongolian Copper Corporation (MCC) to resolve a dispute over Erdenet and Monros mines, after extensive discussions and legal proceedings before the country’s courts.

The longstanding dispute between MCC and the government surrounds the 49% stake in the Erdenet and Monros mines that was acquired by MCC from Russian company Rostec in 2016.

In February 2017, the Mongolian parliament voted to seize MCC’s holding in the Erdenet mine following a probe that determined the sale was unconstitutional as it was agreed upon without the approval of the legislators.

The latest payment marks another positive step in the government’s efforts to compensate the company, which already received an initial payment of $53.1m in June 2022.

MCC plans to work diligently to settle the outstanding balance with the government by the end of this year.

Mongolian Copper CEO Tsooj Purevtuvshin was quoted by as saying: “We are pleased to receive today’s payment and welcome the Government honouring its responsibility to bring this chapter to a close. With half of the compensation now paid, this is positive progress.

“We will continue to partner with the Prime Minister’s working group, chaired by the Minister of Finance, to ensure that the outstanding amount is delivered in a timely way and that MCC receives what it is owed.

“Our priority remains to foster further investments and look to new markets while continuing to contribute to the Mongolian economy.”