The Mongolian Government has established a working group to work with Ivanhoe Mines on a formal Investment Agreement that will confirm a tax, fiscal and legal framework for the development of the Oyu Tolgoi copper-gold mine in Mongolia’s South Gobi region (IM, May 2006, pp30-31). Discussions between Ivanhoe and the working group are anticipated to start shortly. Once a draft Investment Agreement has been prepared by the working group, it will be submitted to the consideration of the Cabinet.

The State Secretary of the Ministry of Finance will chair the 10-member working group. The members of the group consist of representatives from designated Mongolian Government ministries, including the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Nature and Environment and Ministry of Justice and Home Affairs.

“The recent changes to the Taxation and Minerals laws have paved the way for resuming discussions on the Investment Agreement. The establishment of the working group is a key step forward in the process of achieving a comprehensive Investment Agreement for Oyu Tolgoi that will demonstrate the long-term benefits to be achieved for all Mongolians from the socially and environmentally responsible development of the country’s mineral resources,” said John Macken, President and CEO of Ivanhoe Mines.