The government of Mongolia is seeking a bigger stake in Oyu Tolgoi, the biggest undeveloped copper mine in the world, in a surprise move that underlines the challenges ahead for Rio Tinto and Ivanhoe Mines as they develop the country’s flagship mining project.
The government of Mongolia has asked to reopen discussions over the 2009 investment agreement for Oyu Tolgoi, a project widely considered to be a litmus test for future mining developments, following mounting pressure from parliamentarians and environmentalists.
Mongolia is considered one of the hottest mining plays in the world, but questions have lingered over how the young democracy will craft mining policy, and how the $7bn economy will deal with a huge influx of mining investment.
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