BCM Mongolia NewsWire Highlights: Rio Tinto, Ivanhoe May Production Share

NEWS HIGHLIGHTS: Business: Rio Tinto, Ivanhoe May Share Production with
Mongolia; Vast Water Supply for QGX's Baruun Naran Coal Site; Gobi LLC
Installs New Technology; Erdene Gold's Zuun Mod Site One of Asia's
Largest Molybdenum Deposits; Herders Hit by Cashmere Price Drop.Economy: Mongolia's Financial Ratings Lowered by Fitch;
World Bank Conference on Inflation; Bakeries Cannot Lower Prices; Rise
in Cost of Building Materials; Fires Cause MNT 9 Billion Damage; Rail
and Air Transport Data; External Trade Data


Politics:
400 Candidates to Compete in Elections; MPRP
Makes Promise Beyond Original Platform; Pacific Economic Forum
Workshop

RIO TINTO, IVANHOE MAY SHARE PRODUCTION WITH MONGOLIA
Rio Tinto Group and Ivanhoe Mines Ltd. may share production or profits
from a Mongolian copper and gold mine with the nation's government to
win approval to continue developing the site. The production-sharing
plan at the Oyu Tolgoi project may replace a 34 percent equity stake
included in an agreement proposed last year, Ivanhoe Chief Executive
Officer John Macken said, in an interview. Asked whether the
government would demand a share of production corresponding to the
previously proposed 34 percent equity stake, Macken said, "It'll
probably be closer to 50 percent.'' Mongolia's prime minister vowed
to complete an agreement "as soon as possible", Ivanhoe Chairman
Robert Friedland said in a presentation at the World Mining Investment
Congress in London. "The first shaft at Oyu Tolgoi has been sunk, and
the second is under construction", Friedland said

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