Rio Tinto, Mongolia inch closer to resolving mine disputes


Rio Tinto (RIO) and Mongolia have settled some of the disagreements that have delayed the $5.1B expansion of their Oyu Tolgoi copper mine, a Mongolian board member of the venture has said.

However, a number of issues are still to be resolved, including cost overruns, a feasibility analysis and financing. The deadline to authorize the funding is December 12.

The saga has hit shares of Turquoise Hill (TRQ), which is 51%-owned by Rio Tinto and which manages the project via a 66% stake in the mine.

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Comments (4)
  • marpy
    , contributor
    Comments (1520) | Send Message
     
    Do not hold your breath on this on as all the major issues are still outstanding and the GOM has been known to talk out of both sides of its mouth and agree to one thing during negotiations and then demand something completely different the next day. When Rio Tinto restarts phase 2 of this project, then you will know that some real changes for the positive have been made by the GOM with respect to foriegn investment in Mongolia. Till then, it just amounts to cheap talk which is something we have seen from the GOM many times before.
    With 30% of Mongolia's GDP dependent on this project, success of this project is critical to the economic well being of Mongolia and it will directly impact most other investments in Mongolia. TRQ is the canary in the Mongolia coal mine.
    27 Oct 2013, 03:17 PM Reply Like
  • bullwind
    , contributor
    Comments (33) | Send Message
     
    Hola! Marpy LOL Don't kill the damn canary!

     

    Cracked me up but so true! I'm betting on Mongolia and TRQ
    27 Oct 2013, 06:23 PM Reply Like
  • bullwind
    , contributor
    Comments (33) | Send Message
     
    $TRQ More news this weekend.

     

    http://bloom.bg/1aN4hsZ

     

    http://bloom.bg/1aiBjGq
    27 Oct 2013, 06:47 PM Reply Like
  • marpy
    , contributor
    Comments (1520) | Send Message
     
    Well bullwind, here is a comment from one of the articles:

     

    Ben B. Boothe, Sr
    • 15 hours ago
    Our companies invested 9 years in Mongolia, and we found concentrations of power, corruption, a weak legal system, few protections for foreign investors and a total lack of transparancy. With a handful of people controlling most of the business in Mongolia, the small, or midsized up and coming business has many difficulties. Then when we, with our lending institution, decided to forclose on bad non paying loans, found repeated barriers to forclosure and liquidation of assets. Finally, we pulled our investments out of Mongolia at great financial loss. While I personally love the Mongolian people, the corruption of big business there, and corruption of political leaders is something any investor should consider. The one American who we knew who made a lot of money in real estate investment in Mongolia, ran this company and collection efforts with brutal force and intimidation, knocking on doors late at night and physically used fear and force to function. We decided that was not our style, and what money we had left, we pulled out of Mongolia. We hope the people there, particularly the young people, will lead the nation of a higher level of standards.
    I to am long TRQ but only because we have the 1000 lb Rio Tinto Gorilla in our corner. Mongolia still has a way to go before a smaller company can make a go of there.
    28 Oct 2013, 09:39 AM Reply Like
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