Ivanhoe strongly doubt about 51% Government ownership

А.Munkhbat, Vice President of Ivanhoe Mines: I strongly doubt about if investors will accept the demand for 51% ownership of the Government of Mongolia
Written on November 8, 2008 – 1:01 am | by hERERA |

Q: What is the most pick of this year’s forum?

А.Munkhbat : Participants decreased by 30%. Especially, too few delegates from junior exploration companies. It is because of the commodity price fall. Participants worry only about the reaction of the Government. Quite numerous participants commented about urgent reaction measures from the Government in this crisis time.

Q: Government has intention to acquire 51% of the investment. Recently, Rio Tinto disclosed that it will not invest in new projects. Is Mongolia facing the risk of loosing chance to exploit Oyu Tolgoi?
А.Munkhbat: It is natural to demand fair split of the Government’s benefit form mining industry, when commodity price was high. Investor side also agrees this demand. But today the situation is changed. The world financial crisis is strongly affecting mining industry. Mineral price is decreasing for three months in a row. Therefore, a new environment is formed in mining industry. Expense increased enormously and the main product price is decreasing. Therefore, Rio Tinto announced that it will stop its further investment in new projects few days ago. But I didn’t see Mongolia especially Oyu Tolgoi from this list. Hence it is wrong if to understand that announcement in relation with Oyu Tolgoi. On the other hand, the Government of Mongolia shall worry about urgent measures to ensure immediate realization of this project. I strongly doubt about if investors will accept the demand for 51% ownership of the Government of Mongolia.

Reprinted from: http://www.business-mongolia.com/mongolia-news/%D0%B0munkhbat-vice-president-of-ivanhoe-mines-i-strongly-doubt-about-if-investors-will-accept-the-demand-for-51-ownership-of-the-government-of-mongolia/