BHP Billiton Ltd. (BHP) is in the process of closing down its exploration office in Mongolia, a company spokeswoman confirmed on Thursday. The diversified miner opened an office in the central Asian country in 2005, having signed exploration agreements with a number of Western companies in the region. BHP has previously expressed an interest for the Tavan Tolgoi thermal coal mine, alongside Shenhua Energy Co., Vale and Peabody Energy Corp. (BTU), according to people familiar with the situation.
BHP didn’t say why it was closing the office. Resources companies have been awaiting a solid investment framework for years to mine Mongolia’s copper, gold, coal and uranium riches. But progress in government talks with Ivanhoe Mines Ltd. (IVN) for a blueprint deal on Oyu Tolgoi, a US$3 billion copper-gold project, has been piecemeal.
Source: Dow Jones Newswire
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BHP turned its license for TT back to Mongolia.
Take them out of the running for TT. They are not at this time interested. Why did they close their office in Mongolia? They have lost interest in any new investment in Mongolia mining. Along with several other international mining companies.
Mongolian mining has bee set back at least 2 years in mining sector development. This in turn will put infrastructure issues at risk.
GDP will suffer 2 to 3 % drop next year.
IVN ready to go home and rethink OT.
Tough days ahead for Mongolian citizens. “B”