Mongolia PM confirms agreement in principle on Rio Tinto mine

Section:

By Lucy Hornby
Financial Times, London
Monday, April 6, 2015

BEIJING -- Mongolia says it has broken the deadlock in negotiations about Phase 2 of Rio Tinto's $12.6 billion Oyu Tolgoi gold and copper mine, as the resource-rich country seeks to woo back foreign investors.

Foreign investors, whose dollars make up a big component of Mongolia's $11.7 billion economy, have been put off by a combination of falling commodities prices and quixotic policy making in Mongolia.

Expansion of the Oyu Tolgoi mine -- which has been under discussion for two years -- is a potent symbol of the frustrations on both sides. Rio Tinto, the Anglo-Australian miner, and the Mongolian government have clashed over a tax dispute and cost overruns during the first construction phase.

However, on Sunday evening, the Mongolian prime minister said agreement "in principle" had been reached with investors for building on the next stage of Oyu Tolgoi and the smaller Tavan Tolgoi coking coal mine. ...

... For the remainder of the report:

http://www.ft.com/cms/s/0/b5482d08-dc00-11e4-b693-00144feab7de.html



ADVERTISEMENT

USAGold: Coins and bullion since 1973


USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

http://www.USAGold.com

USAGold: Great prices, quick delivery -- all the time.



Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16