It has been 5 days since the Mongolian side board directors of OT LLC left for London to negotiate with Rio Tinto on underground development of the project and project financing. The atmosphere of the meeting is unknown according to the Mining Minister as he told media.
It is very strange to acknowledge that we have insufficient information on such serious matter that would significantly influence the economy of Mongolia. However, we could assume that the secretive nature of the negotiation is due to necessary reasons. Nevertheless, it is hard to understand the statement of the Mining Minister in these modern times that internet and other communication channels are easily accessible.
Rio Tinto asked to raise the initial investment from USD4.4 billion to USD6.7 billion which created argument and disagreements between sides and politicians. Some see it as a reckless act, and some say that we need to conclude the negotiation successfully. Due to certain demands by certain MPs, some media channels reporting it as if the government is keen on negotiating with Rio Tinto. Nevertheless, it is scheduled that the negotiation process will conclude in the end of the weekend. Till then, what can Mongolian politicians can do is to refrain from making irresponsible statements.
An official source also mentioned that the atmosphere of the negotiation is friendly, and sides are reaching a common ground. The 55% of the foreign currency flow into the country will depend on the development of the underground mine. The group will be back in the coming week. If they bring a good news it will be positive not only for Rio Tinto, but for all the businesses in the country.