Source: NAMBC                          Date: 29 September, 2011

Analysts are puzzled by MP’s initiative to revise 2009 Oyu Tolgoi Investment Agreement. If the Mongolian government tries to revise the Oyu Tolgoi agreement, it may send a disturbing message to investors.The government's decision to renegotiate its investment agreement has left analysts unsettled. Finance Minister S. Bayarsogt confirmed to journalists that Parliament is discussing possible changes to the agreement with Ivanhoe Mines.“Coming on the heels of the Mongolian National Security Council rejecting the government's Tavan Tolgoi plan,” said a Toronto analyst following Mongolia's mining sector for over seven years, “the cancellation of about one-third of mining licenses in 2010 because of the River and Water Law, the requirement in the 2009 Nuclear Energy Law Authority that uranium license holders surrender between a third and a half of their licenses ownership as a gift to the government without compensation, the idea that the government will now seek to renegotiate the OT agreement is a real attention grabber.”The possibility of another revision of the mining law is as interesting to analysts as it is intimidating to investors, she said.