Ivanhoe ceo loses in rio chess game over mongolia mine. The investment agreement, signed in 2009, has an initial 30year term with a 20year extension. Ivanhoe and stability for the timely development of oyu tolgoi. The mongolian government on tuesday signed the long awaited investment agreement for the development of the oyu tolgoi coppergold mine in the countrys south gobi region with rio tinto and. Ivanhoe, t, the oyu tolgoi investment agreement on, and economic feasibility study submitted by ivanhoe mines mongolia inc australian technical report oyu tolgoi, mongolia scoping study, throughput options prior to proceeding with a feasibility study for the, by ivanhoe as oyu tolgoi coal.
The mongolian government, ivanhoe mines and partner rio tinto have agreed to back a 2009 investment agreement for the oyu tolgoi coppergold deposit, ending discussions over possible changes and. Jul 19, 2019 oyu tolgoi was launched in 2009 after an investment agreement granted mongolia its share and the rest to canadas ivanhoe mines, now the rio tintocontrolled turquoise hill resources. The investor has the right to conduct the operations of mining and processing minerals from the underground mine area and the open pit mine area, and producing products, within mining license 6709a of the oyu tolgoi deposit. The oyu tolgoi investment agreement is a comprehensive document. The amended shareholders agreement was signed by minister of finance s. While we have all heard this time and again during the past five years of negotiations, it looks like these words may actually come to fruition this time. Oyu tolgoi is one of the worlds largest known deposits of copper and gold.
Update 2ivanhoe finalizes oyu tolgoi investment agreement. Press release for immediate release ot watch mongolia. The requirement is part of an investment agreement that ivanhoe signed with the mongolian government in 2009. Mongolia lawmakers seek to rewrite oyu tolgoi deal reuters. The mongolian government is discussing possible changes to a 2009 investment agreement for its massive coppergold deposit at oyu tolgoi, media reports quoted the countrys finance minister s. Rio, ivanhoe eye oyu tolgoi deal, other investors reuters. Ivanhoe mines said in a statement today that the investment agreement for the oyu tolgoi project remains a fair and legally binding contract. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Ivanhoe to build oyu tolgoi power plant by 2017 marketwatch. Rio tinto and ivanhoe finalise mongolia investment agreement.
As a result, the current economics of oyu tolgoi development are expected to have improved in comparison with those in the 2005 plan. Ivanhoe executive team led by ivanhoe mines president and ceo john macken and mongolian officials led by finance minister s. Ivanhoe, rio tinto in talks with mongolia the globe and mail. The site was discovered in 2001 and is being developed as a joint venture between turquoise hill resources a majority.
It is a matter of fact that the oyu tolgoi agreements specified that the mongolian government was. Oyu tolgoi has the potential to operate for approximately 100 years from five known mineralized deposits. Jul 07, 2009 oyu tolgoi speculation boosts ivanhoe mines stock. Toronto, march 31 reuters ivanhoe mines has finalized an investment agreement with its partners to develop the oyu tolgoi coppergold project in. Rio tinto guarantees oyu tolgoi financing with ivanhoe caledonia to keep calm and carry on in zimbabwe oyu tolgoi in the first half of 20. Oyu tolgoi was launched in 2009 after an investment agreement granted mongolia its share and the rest to canadas ivanhoe mines, now the rio tintocontrolled turquoise hill resources.
Ivanhoe mines is expected to come out with an updated project development plan for its oyu tolgoi coppergold project, in mongolia, within weeks, after finally signing an investment. Bayartsogt introduced a book about the agreement claiming it presents. During a press conference on 4 november, former mongolian finance minister s. Rio tinto said it is dedicated to starting commercial production from rio tinto guarantees oyu tolgoi financing with ivanhoe caledonia to keep calm and carry on in zimbabwe oyu tolgoi in the first half of 20. History and the investment agreement ivanhoe mines ltd ivanhoe, a canadian listed company now renamed turquoise hill resources turquoise hill acquired the exploration licenses2 that hold the main oyu tolgoi ore bodies from bhp in april 2002. Oyu tolgoi is one of the worlds largest new coppergold mines and is located in the south gobi region of mongolia, approximately 550 km south of the capital, ulaanbaatar, and 80 km north of the mongoliachina border. Ivanhoe mines expects the mongolian government to support the oyu tolgoi investment agreement. Amended shareholders agreement signed by rio tinto. In that month the 49 per cent shareholding cap lapses, allowing rio to buy additional shares. In 2003, the original ivanhoe mines was grappling with the challenge of developing its vast coppergold discoveries at the oyu tolgoi project in southern mongolia. Friedland said the agreement with citic metal is the culmination of a 15year relationship between the leaderships of ivanhoe mines and citic. Ivpaf is a canadian mining company focused on advancing its three principal projects in southern africa.
Sep 20, 2011 the completion of the oyu tolgoi investment agreement in 2009 was itself contingent on the annulment of a controversial windfall tax on mining profits set by lawmakers two years earlier. History and the investment agreement ivanhoe mines ltd ivanhoe, a canadian listed company now renamed turquoise hill resources turquoise hill acquired the exploration licenses2 that hold the main oyu tolgoi ore bodies from bhp in. The fast recovery from the 2008 global financial crisis can be attributed to the 2009 oyu tolgoi investment agreement, which stated the terms for how australias rio tinto and canadas ivanhoe mines would operate oyu tolgoi ot to benefit mongolia. Ivanhoe says oyu tolgoi construction 23% complete mining. Ivanhoe and the mongolian government are finally expected to sign the long awaited oyu tolgoi landmark deal.
Ivanhoe mines and rio tinto, two of the worlds leading mining companies, and the mongolian government formed a strategic partnership for construction and operation of the oyu tolgoi project. Ivanhoe s shares jumped last week soon after rio tinto said the bulk of. Apr 04, 2016 ivanhoe mines, a vancouverbased exploration company that had launched exploration programs in mongolia after the introduction of the 1997 minerals law, signed an option agreement with bhp billiton to earn a 100% interest in the oyu tolgoi concession in may 2000. Under the investment agreement, the government of mongolia acquired a 34 per cent interest in the oyu tolgoi project, which cannot under any circumstances be. Apr 05, 2019 the original 2009 oyu tolgoi investment agreement granted 34 percent of the project to the mongolian government and 66 percent to canadas ivanhoe mines, now known as turquoise hill resources. Rio tinto under fire as mongolia presses for mine deal.
Nov 17, 2011 mongolia, the vast central asian country, entered into the oyu tolgoi investment agreement with ivanhoe mines ivn and rio tinto nyse. Mongolia, ivanhoe, rio tinto agree on oyu tolgoi mine. Preparations are underway for the agreement signing ceremony on tuesday. The mongolian government approved the oyu tolgoi investment agreement on 31 st march 2010 without obtaining the prior consent of mongolias parliament the state great hural and despite the fact that the technical and economic feasibility study submitted by ivanhoe mines mongolia inc has not met in full. The focus of this report is the negotiations behind the oyu tolgoi investment agreement otia that started in 2003 and concluded in 2009. The survey will test oyu tolgois copper and gold mineralised trend. Sep 26, 2011 the investment agreement provides that following renewal of the investment agreement after expiry of its term the government may negotiate to acquire an additional 16% interest in oyu tolgoi, on. The oyu tolgoi mining project is the largest financial undertaking in mongolias history and is expected upon completion to produce 450,000 tonnes 500,000 short tons of copper annually. Rio tinto ceo for copper, andrew harding, said that the completion of the investment agreement with the government of mongolia underlined a key milestone for the oyu tolgoi deposit.
Londonbusiness wire rio tinto continues to progress options to secure domestically sourced power for the oyu tolgoi copper mine in mongolia, which it is obliged to do by 30 june 2023 under the 2009 investment agreement ia between turquoise hill, the government of mongolia and rio tinto and subsequent power sector framework agreement. The mongolian government approved the oyu tolgoi investment agreement on 31 st march 2010 without obtaining the prior consent of mongolias parliament the state great hural and despite the fact that the technical and economic feasibility study submitted by ivanhoe. The ia is legally binding between the signatory parties. Ivanhoe, mongolia on verge of investment deal the globe. Mongolia clears way for oyu tolgoi mine marketwatch. The focus of this report is the negotiations behind the oyu tolgoi investment agreement. Mongolia oyu tolgoi coppergoldsilver mine project trip report hereinafter trip report, at 11. Aug 26, 2009 mongolia clears way for oyu tolgoi mine. Financing for the project has come in part from the rio tinto group and an investment agreement between ivanhoe mines and the government of mongolia. Ivanhoe, rio preparing updated oyu tolgoi development plan. However, a dispute regarding the agreement has been continuing until today.
Ivanhoe mines expects the mongolian government to support. Oyu tolgoi investment agreement to be signed within weeks. Rio tinto and its joint venture partner ivanhoe mines ltd. On december 15, 2010, international mining giant rio tinto completed a transaction with ivanhoe mines pursuant to which rio tinto secured a pathway to increase its equity stake in ivanhoe mines to 49%, assumed management of ivanhoe s oyu tolgoi copper and gold project in mongolia and provided a comprehensive financial package to ivanhoe for the. Oyu tolgoi speculation boosts ivanhoe mines stock reuters. The investment agreement provides that following renewal of the investment agreement after expiry of its term the government may negotiate to acquire an additional 16% interest in oyu tolgoi. Ivanhoe and rio said they agreed on a change in the timetable of their investment agreement. The oyu tolgoi investment agreement was signed by the government of mongolia, rio tinto and ivanhoe mines on 6 october 2009 and negotiated in accordance with mongolias minerals law. Managements discussion and analysis for the year ended december 31, 2011 in united states dollars unless stated otherwise 4 property. Ivanhoe mines expects the mongolian government to support the.
The deadline will be extended in 30day increments at the discretion of the ivanhoe board until either the completion of an approved, unconditional investment agreement for oyu tolgoi. An unnamed government minister has said in the ub post newspaper that he expects the oyu tolgoi agreement to be signed within two weeks time by both sides. Separately, turquoise hill had to sign a revised power agreement with the. The ia sets out specific requirements related to stakeholder engagement for the project, including requirements for.
Au to satisfy the remaining conditions in order to complete the investment agreement for the oyu tolgoi coppergold project in mongolia. The effect of oyu tolgoi and its production, speech by cameron mcrae, ceo of oyu tolgoi llc, april 17, 20 turquoise hill investor presentation, december 10, 2012 mongolian investment summit presentation, october 20, 2012. Mongolia in partnership with ivanhoe mines and rio tinto. Kay priestly, a director of ivanhoe and cfo of rio tinto copper, has been appointed interim ceo and catherine barone, vice president of finance at ivanhoe, has been appointed interim cfo. A 12page summary of the agreement is posted on the ivanhoe mines web site. Rio tinto to manage oyu tolgoi project under new financial. Rio, ivanhoe to sign oyu tolgoi deal with mongolia shortly. Oyu tolgoi could account for a third of mongolias gdp by 2021. Negotiations continue with mongolia for development of oyu. Participation in the psca met oyu tolgoi s obligation in the 2009 oyu tolgoi investment agreement investment agreement to establish a longterm power supply.
Kay priestly, a director of ivanhoe and cfo of rio tinto copper, has. Mongolia, the vast central asian country, entered into the oyu tolgoi investment agreement with ivanhoe mines ivn and rio tinto nyse. On march 20, 2012, ivanhoe mines announced that overall construction of the first phase of the oyu tolgoi. The project consisted of openpit and underground mines, a copper concentrator, and supporting infrastructure to produce highquality coppergold concentrate. Now we are in a position to make arrangements with the government to sign the oyu tolgoi investment agreement in the near future, ivanhoe ceo john macken said in a statement.
Bayartsogt, minister of mineral resources and energy d. Rio could boost that stake eventually to above 40 percent by meeting funding commitments for oyu tolgoi. The accord means rio is free to appoint ivanhoe s management, cementing control of the. The writers claim that drilling by ivanhoe mines at oyu tolgoi took only a short time to find a giant. The story of the discovery of oyu tolgoi mongolia focus. Jul 23, 2019 oyu tolgoi was launched in 2009 after an investment agreement granted mongolia its share and the rest to canadas ivanhoe mines, now the rio tintocontrolled turquoise hill resources. The epic oyu tolgoi mine produced a reported 780,000 tonnes of copper, 1. Construction of the oyu tolgoi mining complex began in 2010 and production started in 20. In a complex agreement reached on wednesday rio will finance the completion of oyu tolgoi in exchange for options that allow it to raise its equity stake in ivanhoe to 49 per cent by january 2012. In october 2009, ivanhoe mines, oyu tolgoi and rio tinto plc signed an investment agreement ia with the government of mongolia. The agreement provided a framework for longterm strategic cooperation between the mongolian government and oyu tolgoi to deliver a comprehensive energy plan for the south gobi region. Ceo of turquoise hill is in mongolia actively working on.
Dec 09, 2011 oyu tolgoi is due to begin first commercial production by mid20. Rio tinto, ivanhoe mongolia project output delayed. Dec 10, 2010 ivanhoe and rio in deal on oyu tolgoi. The oyu tolgoi investment agreement and companion shareholders agreement establish the framework for the development and operation of the oyu tolgoi coppergold mine. The story failed to explain that a fundamental provision of oyu tolgois landmark 2009 investment agreement between the mongolian government and the investors the result of more than six years of negotiation is that the investors would provide the billions of dollars in. Ivn said monday that it and rio tinto plc rio have formally advised the mongolian government they arent prepared to renegotiate the.