ULAN BATOR – The Mongolian government has agree to create a working group to hash out a formal, 30-year investment agreement for the Oyu Tolgoi copper-gold project belonging to IVANHOE MINES of Vancouver. The agreement will spell out the tax, fiscal and legal framework for development of the mine in the South Gobi region.
The State Secretary of the Ministry of Finance will chair the 10-member working group. The members of the group consist of representatives from designated Mongolian government ministries, including the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Nature and Environment and Ministry of Justice and Home Affairs. Once a draft investment agreement has been prepared by the working group, it will be submitted to those ministers who are authorized to approve such an agreement under the recently revised Minerals Law.
The initial capital cost of the Oyu Tolgoi mine will be US$1.15 billion or more. Production is expected in mid-2008. Further details are posted at www.Ivanhoe-Mines.com.