Tue, 2011-09-13 04:47
According to a published report, the head of Rio Tinto in Mongolia is warning the Mongolian government not to make any changes in the Oyu Tolgoi investment agreement. The report appears on the website of the newspaper The Australian.
A group of 20 members of Mongolia"s parliament are petitioning for changes in the agreement to give the Mongolian government a larger share of the lucrative mine’s proceeds.
But Cameron McRae, Rio Tinto"s country director in Mongolia, told the newspaper that Mongolia"s economic transformation could stall if such changes are made.
“If even a few voices call for Mongolia"s commitments to be broken and agreements to be changed, there is a risk that this will undermine investor confidences," McRae said.
A group of 20 members of Mongolia"s parliament are petitioning for changes in the agreement to give the Mongolian government a larger share of the lucrative mine’s proceeds.
But Cameron McRae, Rio Tinto"s country director in Mongolia, told the newspaper that Mongolia"s economic transformation could stall if such changes are made.
“If even a few voices call for Mongolia"s commitments to be broken and agreements to be changed, there is a risk that this will undermine investor confidences," McRae said.
Comments
Rio tinto underestimating Mongolian people by saying such things, Mongolian parliament need to change agreement in order to gain larger share, if not there are many investors gagging to invest in Mongolia
Trying to manupilate the county.. and hoping to persuade that 'Rio Tinto equals the foreign investors all taken together'??Actually even if Rio Tinto leaves, other investors will come in smiling. There's no such thing as business "solidarity". Everyone is seeking to maximize its profit :)
Spoken like a true Economist!
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