Business Mongolia: "Oyu Tolgoi agreement before Naadam"

Wed, 2009-07-01 08:58

Oyu Tolgoi Agreement Business Mongolia Reports:

“Oyu Tolgoi draft agreement will be discussed, adopted by the State Great Khural and the Government will be granted with power to sign on it very soon” says an official who is close to the development around the issue. According to his talks, Oyu tolgoi agreement will be adopted before Naadam Festival and the Government might sign on it before the end of July.

Business-mongolia.com reviews that the biggest leverage for this urgency is obviously the global financial recession. Mongolia would have budget deficit of 93 billion MNT (80 million US$) by the end of this year. Therefore, the Government had to cut some of its social welfare expenses, including newly marriage allowance, even child money.

Oyu Tolgoi is currently operated by Ivanhoe Mines (TSX:IVN) and its strategic partner, Rio Tinto (NYSE:RTP).

Mining

Archived Comments

khotiin khun

2009-07-02 07:48:25

So is it actually gonna happen? Anyone has any news?

khotiin khun

2009-07-02 08:05:10

actually very different sounds here: [url=http://www.mongolia-web.com/social/groups/viewgroup/6-Mining+in+Mongolia]Mining in Mongolia Discussion Group[/url]

Esta

2009-07-02 12:30:22

I hope this is true - this will be the best news we all awaiting for!!

pol

2009-07-02 13:33:02

On mine the main reason of a delay of this contract is aspiration of Ivanhoe Mines and Rio Tinto to conclude for themself the favourable contract. In my opinion it not the extortionate contract equal in rights.

Investor

2009-07-09 02:10:11

This what analysts think about the ability of the Mongolian Parliment to finally get their act together and pass the legislation after 6 years. "Despite the support of both major parties, the MPRP and the DP, caucus discipline is much weaker in Mongolia than in, say, Canada," said Salman Partners analyst Raymond Goldie. "Thus passage of the legislation authorizing the agreement is by no means assured before parliament breaks for summer," he said.

mqs

2009-07-16 09:09:22

I hope it is true, we all have been waiting for years. We have been shocked more than one time for this kind of news, I wish no shock agian.

Investor

2009-07-17 04:54:03

Maybe the government spokesman meant Naadam 2010, since this Naadam is over. Meanwhile, as only happens in Third World countries the Licenses of a number of Canadian companies have been suspended for non-specific reasons. I have yet to see non-specific reasons causing suspension of an operating license in a western country, including most south American countries. I have never seen a concession lost except for not either paying cash due or not filing an assessment report.............only in the dark secret recesses of the Mongolian beurocracy does anyone know why.........maybe? It is certainly not clear to the general public. And the Oyu Tolgoi saga drags on as Mr. de gruben predicted. Is there another election or national holiday coming due? Maybe the government will wait until that is near to suggest the agreement maybe completed before then!

Business Mongolia: "Oyu Tolgoi agreement before Naadam"

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