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News -
Mining
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Wednesday, 01 July 2009 16:58 |
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Business Mongolia Reports:
“Oyu Tolgoi draft agreement will be discussed, adopted by the State Great Khural and the Government will be granted with power to sign on it very soon” says an official who is close to the development around the issue. According to his talks, Oyu tolgoi agreement will be adopted before Naadam Festival and the Government might sign on it before the end of July.
Business-mongolia.com reviews that the biggest leverage for this urgency is obviously the global financial recession. Mongolia would have budget deficit of 93 billion MNT (80 million US$) by the end of this year. Therefore, the Government had to cut some of its social welfare expenses, including newly marriage allowance, even child money.
Oyu Tolgoi is currently operated by Ivanhoe Mines (TSX:IVN) and its strategic partner, Rio Tinto (NYSE:RTP).
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Last Updated on Wednesday, 01 July 2009 16:58 |
Meanwhile, as only happens in Third World countries the Licenses of a number of Canadian companies have been suspended for non-specific reasons. I have yet to see non-specific reasons causing suspension of an operating license in a western country, including most south American countries. I have never seen a concession lost except for not either paying cash due or not filing an assessment report.............only in the dark secret recesses of the Mongolian beurocracy does anyone know why.........maybe? It is certainly not clear to the general public.
And the Oyu Tolgoi saga drags on as Mr. de gruben predicted. Is there another election or national holiday coming due? Maybe the government will wait until that is near to suggest the agreement maybe completed before then!