By Lucy Hornby
BEIJING, Nov 19 (Reuters) - Mongolia is likely to try to pin down a deal including 34 percent state ownership for the giant Oyu Tolgoi copper deposit, as falling commodity prices induce the government to back away from seeking majority control for the state.
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Ivanhoe has financial reserves to continue to advance its flagship copper and gold development properties
SINGAPORE, SINGAPORE–(Marketwire - Nov. 14, 2008) - Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) today announced its results for the third quarter that ended September 30, 2008. (Note: all figures are in U.S. dollars, unless stated in another currency.)
Summary of significant achievements and developments since July 1, 2008
- Ivanhoe Mines remains focused on opportunities to advance the company’s flagship Oyu Tolgoi copper-gold project in Mongolia’s South Gobi Region. A start on construction of the planned mine at Oyu Tolgoi has been delayed by a series of Mongolian political events during the past year, including a national general election. Ivanhoe Mines and its strategic partner, Rio Tinto, recently reiterated to the Mongolian Government their readiness to participate in a resumption of discussions to conclude an Investment Agreement for Oyu Tolgoi. The new coalition government has declared that the development of major mineral deposits, including Oyu Tolgoi, is a matter of high priority. (more…)
Former Minister of Foreign Affairs, Head of advisors’ group of World Growth International NGO in Mongolia Ts. Gombosuren is interviewed.
Q – What is World Growth organization? I understand that this organization is a place that gives a lot of advice. What are you advising to us?
A – World Growth is international NGO and non-profit organization. It runs an activity to give advice to world countries, in particularly, poor developing and developing countries. We do not have money to give you. Instead of that, we have world scale ideas and opinions. We have prospects to share these ideas and opinions, as well as, to contribute to the development of your country. World Growth wants to give advice to us in five key directions: Economic Freedom, Rule and Stability of Law, Good Governance, Property Rights, and Environmental Interdependence. They have called it “Mongolia’s Path to Prosperity Project.” (more…)
The position is to grant the power to the Government to sign the investment agreement on Tavan Tolgoi and Oyu Tolgoi. MP Kh.Badamsuren, Head of the working group of drafting the amendment in the Mineral Law of Mongolia, has his view regarding the current development in mining legislation.
Q: Working group on drafting the amendment in the Mineral Law of Mongolia worked on it for quite long time. What is the result of your group’s work?
MP Kh.Badamsuren: According to the resolution of the Speaker of the State Great Khural, a working group was established and started its work. The working group is paying much attention on drafting the amendment. All in all, the working group presented its first draft to the party groups of the parliament. Basically, party groups principally supported it. But there were many comments during the discussion from MPs. Therefore, the working group will discuss these comments and insert them into the draft law. One thing need to emphasize here is MPs have visionary approach. (more…)
To adopt main principle and guidance
Considering the current decline of some commodity price and share price of mining companies due to the world financial crisis and tendency of decreasing investment in the mining sector and with the purpose of preventing the risks and problems that can evolve in the future, to unlock the obstacles in realizing and exploiting strategically important major mining deposits, to initiate the negotiation with the investors in order to form the opportunity and resource to provide their exploitation income to our citizens and accelerate time to sign the investment agreement, hereby the State Great Khural issues this resolution, according to the provision 43.1 of the Law on the State Great Khural of Mongolia, as follows: (more…)
To reject draft laws.
According to the provision 22.5 of the law on rule of the State Great Khural of Mongolia and provision 43.1 of the Law on the State Great Khural, The State Great Khural resolves:
1. To reject a draft law to amend the Mineral Law of Mongolia, presented by MP Ts.Damiran and Ch.Avdai and other 13 MPs on March 12 2008 and a draft law to amend the Mineral Law of Mongolia, presented by MP E.Bat-Uul and R.Erdeneburen and other 2 MPs on April 22 2008, with reason of the majority of lawmakers’ term is expired. (more…)
Yesterday, parliamentary group of MPRP and DemParty discussed the comments and conclusion of the working group of drafting amendment in the Mineral Law of Mongolia. The working group presented two draft alternatives. First alternative is to withdraw two drafts, because of the fact that the most of the lawmakers weren’t re-elected. The second alternative is not to change the current Mineral Law of Mongolia and to sign in the investment agreement on Tavan Tolgoi and Oyu Tolgoi. (more…)
MP S.Oyun, a member of working group of drafting amendment in the Mineral Law of Mongolia, has her words regarding the current issues and mining legislation development.
Q: Working group held several meeting, but it had not that satisfactory results.
MP S.Oyun: We met several times after studying four or five drafts for the Mineral Law of Mongolia, presented since 2006. In year 2006, the Mineral Law of Mongolia has provision that the Government of Mongolia to own up to 34% in strategic deposits. After that there were talks about increasing it to 51%. Also provisions on agreement in dividing product and windfall tax change were added. Meantime, world economy is undergoing the financial crisis and the commodity price is decreasing 2 months in a row. Actually, commodity price is surging, therefore mining business is risky. Members of the working group are discussing seriously about 51% ownership of the Government. (more…)
MP Batj. Batbayar, a member of the working group on drafting amendment in the Mineral Law of Mongolia, shares his opinion and position.
Q: It was said that the draft amendment of Mineral Law would be adopted within this year. What is the position of the members of the working group?
MP Batj.Batbayar: I express my opinion directly. We are feeling the negative outcomes of the law that is much related with the investment and economy. If amend a lot, then the law will deteriorate. The Mineral law was changed many times in last two years. Today adopt and tomorrow amend, this is the cycle of our decision making. But investors will invest in places where the law is stable at least 10-15 years. Therefore, we shouldn’t need to touch this law that much. Investors that are interested in Mongolia is getting fewer. (more…)
Excerpt from his comment about the forum
…Keith Marshall, Executive Director of Oyu Tolgoi project, said that “World financial crisis brought the most uncomfortable period to mining companies. We lost the last golden chance of copper price boost. When the price rebounce, Oyu Tolgoi might be profitable. Banks stopped their loan, so mining projects can’t be implemented. There is nothing left to us except hoping that the State Great Khural adopts new mineral law and start our project.”…
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