China, Mongolia In Talks On Labor Pact At Oyu Tolgoi--Report

BEIJING, June 13 -- The governments of China and Mongolia are discussing a potential labor agreement which, if finalized, will transfer 2,500 Chinese to work for copper-gold mining project Oyu Tolgoi in Mongolia, the 21st Century Business Herald reported Sunday, citing an unnamed person in the talks.

The person was also cited as saying the earliest a decision about whether Chinalco can participate in the development of the Oyu Tolgoi project may come in July.

If the government labor agreement is signed, the person said in the report that the chance for Chinalco to take part in the project will be higher.

Chinalco now is an indirect participant of the mine because of its roughly 9% stake in Rio Tinto (RIO.AU, RIO.LN), which has a 22.4% stake in Ivanhoe, the operator of Oyu Tolgoi project, the largest under-developed gold-copper mine in the world. Rio Tinto has an option to increase its stake in Ivanhoe to 46.6% eventually.