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In another sign that an agreement
will be reached for the mining of the Oyu Tolgoi site, the top executive
of one of the site’s mining companies is currently visiting Mongolia.
Rio Tinto CEO, Tom Albanese,
released statements yesterday indicating he believes the current impasse
in Parliament’s approving a mining agreement will be resolved.
"The project has the potential
to provide many jobs for Mongolians, together with skill-training opportunities,”
said Albanese. “Once the Mongolian Parliament approves the recently
completed Investment Agreement, and following approval by the boards
of Rio Tinto and Ivanhoe Mines,
production from the project
could begin in a few years.”
Rio Tinto, along with mining
giant Ivanhoe Mines, have spent the past five years negotiating an agreement
with the Mongolian government to mine Oyu Tolgoi.
The agreement has been approved
by the cabinet, however, remains stalled in Parliament.
Opposition lawmakers have accused
the government of not receiving enough royalties in the agreement and
allowing contractual agreements which are not legal.
Commenting on the long-term
benefits of Oyu Tolgoi, Albanese said, "I see great benefit to
Mongolia. Once fully operating, we expect the project to employ several
thousand people and we have made a commitment to ensure that 90% of
the workforce will be Mongolians. This project will result in a world-class
copper-gold mine, a power station, roads, and ultimately a copper smelter
to ensure that the people of Mongolia gain the maximum possible benefits
from Oyu Tolgoi. These developments also will lead to many jobs in other
areas of business that will meet the needs of the mine."
"Rio Tinto operates to
the highest standards where ever it is in the world and we will ensure
these high standards are maintained in our Mongolian operations."
"Rio Tinto respects the
interests of Mongolia and the Mongolian people."
Oyu Tolgoi is considered to
be the largest untapped copper and gold mine in the world. 2005 estimates
put the annual yields from the mine at 450,000 tons of copper and 330,000
ounces of gold to be extracted beginning in 2010.
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