Tuesday April 7, 2015, 9:46am PDT
The Australian Financial Post reported on Saturday that the Mongolian government has come to an agreement with Rio Tinto (NYSE:RIO) that will allow the massive Oyu Tolgoi mine expansion to move forward. The two parties have been locked in negotiations for two years, according to the Post.
Shares of Rio’s Turqoise Hill Resources (TSX:TRQ) have gained roughly 10 percent since the announcement to reach $4.48, while Entrée Gold (TSX:ETG), which also has a stake in the project, is up about 50 percent to $0.39.
As quoted in the publication:
"Mongolian Prime Minister Saikhanbileg Chimed stands out from predecessors in his use of national television and texting to get his message across to the public: without foreign investment, the economy is going nowhere.
The 46-year-old – who won office in November after the previous PM was ousted in a no-confidence vote – was back on TV today on a similar theme, highlighting stalled mining projects and disputes with foreign investors that need to be resolved.
"The two sides have reached agreement, in principle, on the main points of dispute. Soon we will officially announce these results to the international community, after bureaucratic levels finalise relevant steps,” said Mr Saikhanbileg, referring to two years of negotiations between the government and Rio Tinto Group, which controls the Oyu Tolgoi mine.
Results of on-again, off-again negotiations to develop the Tavan Tolgoi mine will also be announced soon, said Mr Saikhanbileg, speaking in his office surrounded by family photos and a portrait of 13th century warlord Genghis Khan.