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Oyu Tolgoi Talks to Resume Monday
Canada’s Ivanhoe Mines Ltd. said it will resume negotiations with the Mongolian government on Monday to finalize an investment agreement for its Oyu Tolgoi (OT) copper-gold mine, according to Reuters. Ivanhoe’s investment weighs largely on the OT project, which has been delayed for more than four years.
Last week, the parliament approved a resolution that gives the government the power to sign the OT draft agreement with Ivanhoe and its partner Rio Tinto, which holds a 10 percent equity stake in the project.  The details have yet to be resolved, according to the Reuters report.
The resolution that was approved last week excluded a tax holiday that was submitted as part of the original draft agreement.  The Canadian mining company would have received tax holidays from windfall profits tax, value added tax, customs duty, and dividend withholding tax, totaling about $US18 billion.
The government of Mongolia will take a 34 percent stake in the project, according to the draft agreement.
The mine is expected to produce an average of at least 440,000 tonnes of copper and 320,000 ounces of gold over its estimated 35-year life.
Ivanhoe had indicated that the Mongolian government seeks a mutually beneficial agreement.