Parliament has asked President
M.Enkhbayar to report by February 1 on possibly concluding negotiations
for developing two of Mongolia’s most long-awaited mining sites.
In a resolution passed Thursday,
the parliament gave permission for the government to reopen talks with
Rio Tinto and Ivanhoe mines on a mining agreement to develop the Oyu
Tolgoi copper and gold mine.
Additionally, the president
will be asked to report on negotiations over an agreement for mining
the Tavan Tolgoi coal deposits.
Negotiations over Oyu Tolgoi
have dragged on for over seven years and numerous governments. Mongolian
law allows the government to own a 34 to 50 percent interest in a Mongolian
mine’s mineral rights.
However, squabbling over Oyu
Tolgoi has prevented the development of what is called the world’s
most important undeveloped gold and copper deposits.
Further, both Rio Tinto and
Ivanhoe Mines’ stock value has suffered from investors now being unsure
as to whether the company will ever reach an agreement with the government.
Also, company officials have
recently voiced concern over whether they will be able to raise the
necessary financing to develop the mine even if an agreement with Mongolia
is, at last, reached.
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