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Mongolia Seeks Bigger Stake in Rio, Ivanhoe Copper Mine
Sep. 26, 2011 10:59AM PST
Base Metals Investing Bloomberg reported that Mongolia intends to raise its stake in one of the world’s largest undeveloped copper mines, two years after the country agreed with Rio Tinto Group (NYSE:RIO) and Ivanhoe Mines Ltd. (NYSE:IVN) to cap government control until 2039.
Bloomberg reported that Mongolia intends to raise its stake in one of the world’s largest undeveloped copper mines, two years after the country agreed with Rio Tinto Group (NYSE:RIO) and Ivanhoe Mines Ltd. (NYSE:IVN) to cap government control until 2039.
The market news is quoted as saying:
Mongolia’s attempt to renegotiate follows pressure from lawmakers ahead of an election next year and highlights risks for overseas investors as countries seek greater control of raw materials. So-called resource nationalism is the biggest business risk for global mining companies, Ernst & Young LLP said last month.
The project, 66 percent owned by Ivanhoe Mines, is half way through completion and will be one of the world’s five-biggest copper mines, according to Rio, which controls Oyu Tolgoi’s management. Ivanhoe, 48.5 percent owned by Rio, spent more than six years negotiating with Mongolia before reaching an agreement in October 2009 to develop the site, which is scheduled to begin commercial production in 2013.
