Russia ratifies Erdenet copper JV agreement with Mongolia
Source: Interfax
metalsplace.com
March 13 – The Russian government has given its final seal of approval to an agreement with Mongolia on the functioning of the Erdenet joint venture, which is Mongolia's biggest copper mining enterprise.
Russian Prime Minister Mikhail Fradkov on March 10 signed an instruction on endorsing the agreement, which received general approval back on July 1, 2003, the government's press office said.
The agreement turns Erdenet, which was set up in Soviet times, into a limited liability company, based and registered in Mongolia. It states that Russia owns 49% and that Mongolia owns 51% of the joint venture.
The agreement is valid five years, and is automatically renewable every five years after that unless one of the owners gives notice, at least six months prior to the expiry of any five year period, that the agreement should be terminated. The agreement enters into effect after both sides have completed the necessary internal state formalities.
The northwestern section of the Erdenet ore belt, which Erdenet is currently mining, contains proven reserves of approximately 6 million tonnes copper and 170,000 tonnes molybdenum. |
