Sunday, 25 September 2011

Mongolia eyes 50% stake in key Oyu Tolgoi project

Trucks carrying coal An increase in mining activity is expected to boost Mongolia's economy in the coming years
Mongolia is seeking greater control of one the biggest mining projects in the country, which is being developed by Rio Tinto and Ivanhoe Mines.
The government said it wants to raise its stake in the Oyu Tolgoi project to 50% from 34%.
According to the original contract signed in 2009, Mongolia can increase its stake only after 30 years.
When completed, the project is expected to account for as much as 5% of Mongolia's gross domestic product.
"At this moment the government has made the decision that we will send the proposal to renegotiate the timeframe with which to increase the Mongolian portion to 50%", Dashdorj Zorigt, Mongolia's mining minister said.

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