Ivanhoe Mines and Rio Tinto Reaffirm Readiness To Engage in Investment Agreement Negotiations With Mongolia for Development of O
October 17 2008 - 8:30AM
Marketwired
John Macken, President and CEO of Ivanhoe Mines, and Bret Clayton,
Rio Tinto's Chief Executive, Copper & Diamonds, said today that
they were looking forward to engaging in negotiations with the
Mongolian Government to conclude an Investment Agreement for the
development of the Oyu Tolgoi copper-gold project in Mongolia's
South Gobi Region.
The Mongolian Parliament has established a new, all-party
working group of members of parliament that is to report on
proposed changes to the country's Minerals Law by November 15. The
government wants an updated Minerals Law in effect as a necessary
step before a resumption of discussions on an Investment Agreement
for Oyu Tolgoi.
"We are encouraged by the initial steps that have been taken by
the new Mongolian government and by the communications that we have
had with government representatives," said Mr. Clayton, who also is
a Director of Ivanhoe Mines. "We are looking forward to engaging
with the government as soon as possible to complete a competitive
Investment Agreement that recognizes the realities of the current
international investment environment."
Mr. Macken said Ivanhoe Mines and its strategic partner, Rio
Tinto, had negotiated an Investment Agreement with a Mongolian
Government working group in May of last year and were confident
that the agreement could be appropriately updated to address the
current interests of the investors and the people of Mongolia to
enable construction of the project to proceed.
Mr. Macken said that Ivanhoe Mines remained in a strong
financial position and with significant assets, which include
approximately $US 450 million, on a consolidated basis at September
30, and a controlling stake in SouthGobi Energy Resources, which
now is selling coal from its new Ovoot Tolgoi mine in southern
Mongolia to customers in China.
As noted in a statement issued September 30, senior management
of Ivanhoe Mines and Rio Tinto met with key Mongolian government
representatives in September to discuss the necessary remaining
steps for the negotiation and ultimate parliamentary approval of a
fair and equitable Investment Agreement for the Oyu Tolgoi
copper-gold project. Government leaders have stated that they share
the investors' high priority for the conclusion of an acceptable
agreement as soon as possible.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investor Relations
(604) 688-5755 Ivanhoe Mines Ltd. Bob Williamson Media (604)
688-5755
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