The Mongolian Government and joint team of dealmakers from Rio Tinto and Ivanhoe Mines both sat at the negotiation table. They reached some common consent and joint team accepted our proposal of 34% of ownership and dividend issues. Some officials have their word on it.
Q: How much fund is essential to own 34% of Oyu Tolgoi project?
Minister D.Zorigt: Negotiation is under way, so I can’t give you exact number.
Q: Some say a trillion MNT is needed, at minimum. Do we have such a fund?
Minister D.Zorigt: Of course we can’t provide cash payment.
Q: Mongolian side made request to get pre-payment to Rio Tinto. What was the answer?
Minister D.Zorigt: We are putting forward the issue. It is hard to solve. But we are keen.
Q: When the negotiation will be concluded?
Minister D.Zorigt: we are trying to meet the given time. We will inform the updates and achievements by February 1 2009.
Q: What is our advantage and disadvantage? Commodity price slumps and time is not in favor for the mining industry.
Minister D.Zorigt: We are neighbor to one of the biggest economy in the world. Deposit has good grade and size. There are some difficult issues, such as infrastructure. Also the world economy slowdown is additional. But we are farseeing and making deal not for today.