Ivanhoe and Rio Tinto set to resume Mongolia talks

Reuters reported that Canada's Ivanhoe Mines and global mining giant Rio Tinto are ready to resume talks with the Mongolian government on their massive Oyu Tolgoi copper and gold project in Mongolia. Mr Bret Clayton Rio Tinto's head of copper and diamonds and an Ivanhoe director in a statement said that "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.” The government wants an updated minerals law in effect before restarting talks on an investment agreement for the Oyu Tolgoi project. It has formed a parliamentary committee that will propose changes to the country's mineral law by November 15th 2008. A draft agreement, which was withdrawn early this year, gave Mongolia 34% stake in the project. Ivanhoe and Rio Tinto estimate their development costs for Oyu Tolgoi at up to USD 3 billion. Oyu Tolgoi is expected to produce an average of 440,000 tonnes of copper and 320,000 ounces of gold a year over a 35-year life. ---steelguru