Entree Resources Addresses Questions Raised in Plenary Session of Parliament of Mongolia
Entree faces delays to its Lift 1 development in Mongolia as the local tax authority stalls the transfer of its mining license.
Entree Resources Ltd. (ETG) addressed parliamentary inquiries on October 6, 2026, concerning the transfer of the Shivee Tolgoi and Javkhlant mining licenses to joint venture partner Oyu Tolgoi LLC (OT LLC). The company confirmed it has calculated the transfer tax, remitted the payment to the Mongolian Tax Authority (MTA), and submitted all required documentation for valuation review.
However, the MTA has not confirmed the valuation calculations, stating the submitted documents are incomplete. This lack of confirmation prevents the issuance of tax payment certificates required to register the license transfer. The license transfer is a strict prerequisite for Lift 1 underground development and extraction activities on the Shivee Tolgoi license. Discussions with the Government Working Group and OT LLC stakeholders regarding State participation in the license area are ongoing.
Entree Resources Ltd. (ETG) reported a continuation of its multi-month regulatory stalemate rather than any new development, as the Mining Tax Authority’s (MTA) request for additional documentation has been a recurring theme since at least March 2026. This delay directly impacts the timeline for the Lift 1 Panel 1 lateral development, which remains paused. This is a known risk that has been factored into the company's operational guidance, with the negative impact on the near-term development schedule being incremental and expected.
The release does not alter the fundamental thesis: Entree's value is entirely contingent on resolving the license transfer and the concurrent 34% State participation negotiations. Until the MTA issues the tax certificate, the project remains in limbo.
Entree Resources Ltd. (ETG) holds a carried participating interest in the Oyu Tolgoi Joint Venture (EJV) in Mongolia, covering the Shivee Tolgoi and Javkhlant mining license areas. Under the joint venture structure, Entree holds a 20% carried interest in mineralization below 560m elevation, specifically the Hugo North Extension and Heruga, and a 30% carried interest above 560m. OT LLC, which is owned 66% by Rio Tinto and 34% by the State of Mongolia, holds the remaining 80% economic interest and manages all operations.
The company’s flagship project is the Hugo North Extension (HNE) Lift 1 and Lift 2 underground block-cave development. Lift 1 is targeted to produce approximately 500kt of copper per year from 2028 to 2036. The project is currently in pre-production, with underground development paused pending a license transfer. Infill drilling, for which approximately 14,175m was approved for 2026, is ongoing to support resource modeling.