Source: AFP                     Date: 12 October, 2011

Mongolia abandoned its bid to renegotiate a huge its Oyu Tolgoi copper and gold project investment agreement. Although a faction within Parliament has pushed for a greater stake in the project, the government has officially decided to stand by its 2009 deal.
“Ivanhoe Mines, Rio Tinto, and the government of Mongolia... are pleased to confirm that all parties have reaffirmed their continued support for the investment agreement,” said a statement released last week.
Government faced mounting public pressure to secure a larger stake of the nation's resources for the upcoming parliamentary election next year. The government hopes the money from Oyu Tolgoi and other project will pull thousands out of poverty, and so is reluctant to appear too eager to hand over major assets to foreign firms.
“I was expecting a minor deal,” said Frontier Securities Chief Market Strategist Dale Choi. “But a minor deal would have set a precedent for further minor deals, causing never-ending anxiety. So they chose to leave it alone.
The multi-billion-dollar Oyu Tolgoi project is Mongolia's biggest investment since its independence from Russia. Construction of the mine is half complete and production should begin by third quarter of next year.