Turquoise Hill Resources (TSX: TRQ), formerly Ivanhoe Mines, along with Rio Tinto and Oyu Tolgoi LLC, has rejected a request from the Mongolian government to renegotiate an investment deal over its Oyu Tolgoi project, it announced this morning.
This follows a request from Mongolia’s mining minister to renegotiate the agreement, which was signed in October 2009 and became effective in March 2010, creating a partnership between the Mongolian government and Turquoise Hill and giving Mongolia a 34% interest in the project.
“The investment agreement is mutually beneficial for the Mongolian government and investors,” said Kay Priestly, Turquoise Hill’s CEO. “We have invested nearly US$6 billion, created thousands of jobs for Mongolians and are on the verge of production.”
Priestly went on to say the investment agreement provides a legal framework and is a legally binding document.
“The investment agreement has been fundamental in building Mongolia’s reputation as an increasingly reliable and secure destination for foreign investment.”
The Mongolian government confirmed the agreement was in compliance of all Mongolian laws and regulations as recently as October 2011.
Oyu Tolgoi is a copper-gold-silver mine located in Mongolia’s South Gobi region.
As of press time, there had been no response from the Mongolian government.
