Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37533)	5/24/2009 9:04:52 AM
From: LoneClone	Read Replies (1) \| Respond to of 194796

Mongolian mining in focus ahead of election miningweekly.com By: Reuters 22nd May 2009 Foreign investors will be watching Mongolia's presidential elections on Sunday for signs of whether the outcome will serve to further postpone the parliament's ratification of a landmark mining investment agreement. Following are some of the projects at stake and other facts about foreign investment in Mongolia, a vast country landlocked between Russia and China whose empire under Genghis Khan once extended west as far as Hungary. OYU TOLGOI The Oyu Tolgoi copper and gold project, which would be Mongolia's largest foreign investment, has become a symbol of the difficulties of investing in the country. Negotiations over the $3-billion project, a joint effort between Ivanhoe Mines and Rio Tinto, have dragged on for years as the government has sought the revenues that eluded it with previous mining deals. Ivanhoe initially struck a deal to develop the mine in 2006, but that pact was withdrawn last year when Mongolia sought more favourable terms as copper and gold prices soared. The proposal has been endorsed by Mongolia's cabinet and National Security Council and is now with the parliament. At issue is the extent of ownership Mongolia will ultimately demand and the precedent that demand will set for future negotiations with regional and global players such as BHP Billiton. The country's contentious 2006 mining law allows the state a share of up to 34% of deposits found with private funds and up to 50% of those discovered with state funds. TAVAN TOLGOI Tavan Tolgoi, known as the world's biggest untapped coking coal deposit and located in the Gobi Desert, has also been on the agenda for years. Investors from a range of countries, including China, Russia and the United States, have expressed an interest in the project. Analysts say Mongolia's current need for financing to help it get through a fiscal shortfall brought about by falling commodity prices could potentially give leverage in bidding for the project to those countries that help it with financing now. Progress on the project has been held up by the lack of an agreement on Oyu Tolgoi, expected to serve as a model for deals on other projects. Developing the remote project will also likely require significant investment in infrastructure. URANIUM, TRANSPORT Mongolia is also looking to develop its uranium reserves. Prime Minister Sanj Bayar earlier this month proposed a partnership with Russia to extract uranium, offering Russia access to its deposits of the metal. Russia's state rail monopoly also signed a deal potentially totalling $7-billion to upgrade Mongolia's rail network and improve access to untapped deposits of uranium, coal and other minerals in the Gobi.