Mongolia says making progress with Ivanhoe on pact
Date: 22-Oct-04
Country: CANADA
Ivanhoe says the billion-dollar Oyu Tolgoi project in the Gobi Desert has the potential to develop into one of the world's biggest mines.
The stability agreement would set conditions within the limits of existing legislation to protect Ivanhoe's investment in cases of sudden changes in laws regarding taxation, water and land use rights and other factors.
"The Mongolian government and Ivanhoe Mines are working toward reaching an agreement on a stable environment. I believe they almost share the same ground on all the most important points," said President Natsagiin Bagabandi.
"I believe there are very few details still to be worked out," he told a news conference in Ottawa after a meeting with Prime Minister Paul Martin.
Mongolian officials said in September that the deal could take another two months to negotiate.
