Oyu Tolgoi to be renegotiated; new government seeks larger share of ownership
Wednesday, 09 January 2008
As expected, the government
of new Mongolian Prime Minister Sanj Bayar has withdrawn from Parliament
the agreement to allow the development of the Oyu Tolgoi mining site.
Canadian-based Ivanhoe Mines
(IVN.TO) and Australian miner Rio Tinto (RIO.L) had spent five years
negotiating the agreement, which had been approved by the cabinet of
former Prime Minister M. Enkhbold.
In the past, company officials
have warned they might withdraw from the project if they do not at last
receive approval to proceed with developing the site.
Oyu Tolgoi is considered one
of the world’s most important mines. Forecasts issued by Ivanhoe in
2005 called for annual production of 450,000 tons of copper and 330,000
ounces of gold to be extracted annually beginning in 2010.
The agreement which had been
before the Parliament called for Mongolia to retain 34 percent ownership
in Oyu Tolgoi. Ivanhoe Mines Ltd. and Rio Tinto were to jointly operate
the mine, which was expected to begin commercial mineral extraction
in 2010.
"The prospect of a longer
and more contentious revision process makes it unlikely that an investment
agreement will be approved by the current Parliament," according
to Eurasia Group analyst Kyle Jaros who was quoted by Reuters.
In December, Prime Minister
Bayar said he would seek an international body to assist in negotiating
Oyu Tolgoi on the Mongolian government's behalf.
It is believed such assistance
will come from the World Bank, the European Development Bank, and other
multilateral institutions.
In a statement, Ivanhoe officials
said Bayar had indicated he wanted to complete the agreement before
the next general election, scheduled for June.
"Ivanhoe Mines will await
the necessary details of the prime minister's proposed action plans
before assessing any implications for the draft agreement and the ongoing
development of the Oyu Tolgoi project," the company said.
Comments (3)
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Akira
KAMIMURA, lecturer, faculty of Mongolian studies, Tokyo University of
Foreign Studies launched an innovative website on old Mongolian
manuscripts maps in cooperation with the state archive of Mongolia. It contains 16 precious maps which are stored at the state archive for
academic use. The oldest map was estimated being made in 1803-1805.
News Archives 
As expected, the government
of new Mongolian Prime Minister Sanj Bayar has withdrawn from Parliament
the agreement to allow the development of the Oyu Tolgoi mining site. 
Comments (3)
