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Reports claim Oyu Tolgoi possible by December PDF Print E-mail
News - Mining
Thursday, 20 November 2008 08:17
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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