Ivanhoe, Rio Tinto on verge of investment agreement with Mongolian government
Mon Oct 5, 10:40 AM
The Canadian Press
ca.news.finance.yahoo.com
By The Canadian Press
VANCOUVER, B.C. - Ivanhoe Mines (TSX: IVN.TO), its strategic partner Rio Tinto PLC (NYSE: RTP) and the Mongolian government are set to finally resolve terms for the Oyu Tolgoi copper-gold project Tuesday, at a signing ceremony in the capital of Ulan Batar.
An investment agreement will be signed by all parties, establishing "a legal, stable, long-term tax and regulatory environment for the construction and operation of the Oyu Tolgoi mining complex," Vancouver-based Ivanhoe said Monday.
Last month, the Mongolian government cleared a key hurdle for the development of Oyu Tolgoi when it cancelled a 68 per cent windfall profits tax on copper and gold, effective January 1, 2011.
It is part of amendments made to four laws that will help complete an investment agreement for Oyu Tolgoi in Mongolia's South Gobi region.
Ivanhoe Mines and Rio Tinto have been negotiating an investment and profit-sharing agreement for Oyu Tolgoi with the Mongolian government for several years.
The project, located just north of the Chinese-Mongolian border, has been held up by disagreements over how to share the wealth in a central Asian country suffering from widespread poverty and corruption. |
