Mongolia. Rio Tinto and Ivanhoe Mines are not going to reconsider Oyu-Tolgoi investment agreement

Rio Tinto and Canadian Ivanhoe Mines rejected the reconsideration of Oyu-Tolgoi gold and copper deposit investment agreement, is said in the message of the companies.

66% of Oyu-Tolgoi belong to Ivanhoe Mines and 34% - to Erdenes MGL a Mongolian state company under an investment agreement signed in October 2009 by Mongolian government, Rio Tinto and Ivanhoe for 30 years.

At the end of September 2011 Mongolia proposed Rio Tinto and other shareholders of Ivanhoe Mines to increase the state share in Oyu-Tolgoi project from 34% to 50%.

At the same time, Rio Tinto increased its share in Ivanhoe to 49%. This is the maximum shareholding stipulated by acting agreement between Rio Tinto and Ivanhoe Mines.

Answering the letter of Mongolian government, Rio and Ivanhoe claimed, they were “not ready to change conditions of the investment agreement”.

It is planned to put Oyu-Tolgoi gold and copper deposit into operation in the first half of 2013. Total volume of investments into Oyu-Tolgoi makes up about $6.5 billion.

Currently the term of Oyu-Tolgoi development is assessed at 27 years. The company plans to produce 11.5 million tons of copper and 13.1 million ounces of gold. The term of development can be increased to 59 years and production – to 23.8 million tons of copper and 26.4 million ounces (821 tons) of gold.

Ivanhoe Mines develops non-ferrous and precious metals deposits in Mongolia, Kazakhstan and Australia. Rio Tinto is one of the largest mining companies in the world with headquarters in Great Britain. The company produces aluminium, copper, diamonds, coal, uranium, gold and iron ore on all continents.

Translated by Alexandra Utyasheva

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