Mangolia may frame law to control Gold, Copper resources
Metal Recycling News | 2012-09-10 09:01:52
To have greater control over gold and copper resources, one of the world's largest holders of natural wealth, Mongolia is likely to frame new laws.
By Paul Ploumis
MANGOLIA(Scrap Monster):To have greater control over gold and copper resources, one of the world's largest holders of natural wealth, Mongolia is likely to frame new laws.
The country has many large gold and copper reserves including the Oyu Tolgoi copper-gold project in the country"s South Gobi region.
In the Oyu Tolgoi , 41 billion pounds of copper and 21 million ounces of gold is estimated. The anticipation is that revenue from the mine could boost Mongolia's GDP by one third.
The project's 66 percent have given to Canada"s Ivanhoe Mines according to the original 2009 investment agreement. It is now known as Turquoise Hill Resources and 51 percent is owned by Rio Tinto.
The deal has long rankled a group of nationalist lawmakers that has lobbied to reduce foreign ownership of the country"s mines.
A coalition has been formed by the prominent members of Mongolia's parliamnent and have asked the government to own 51 percent of the project once foreign partners recoup their start-up investment.
Increasing of stake in the project is allowed by the original deal, but only 30 years after it had gone into operation.More than a third of Mongolia"s total economy is accounted by the investment in the Oyu Tolgoi project.
