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Reports claim Oyu Tolgoi possible by December |
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Thursday, 20 November 2008 |
 The Mongolian Parliament could
vote by December 1 on a final agreement to allow mining to begin at
the Oyu Tolgoi site. However, concerns by financial markets about the
reliability of the Mongolian government could prevent the project from
being financed.
Reports on Wednesday claimed
the Mongolian government had reached agreement with Ivanhoe Mines Ltd.
and its partner, Rio Tinto, in which the country would have a 34 percent
stake in the site.
Negotiations for a mining agreement
have brought a number of documents before the parliament over the past
five years. However, none of the agreements have been approved.
In the mean time, private markets
have shown their discomfort with the Mongolian government by refusing
to invest in Mongolian projects.
For instance, Ivanhoe's stock
is down 78 percent this year, and was down 21 Canadian cents at C$2.31
on Wednesday.
Considered one of the world's
richest undeveloped copper deposits, Oyu Tolgoi is expected to produce
an average of at least 440,000 tonnes of copper and 320,000 ounces of
gold a year over a 35-year mine life, according to the Reuters news
agency.
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