Government of Mongolia approves Oyu Tolgoi feasibility study

During regular cabinet meeting this afternoon, Government of Mongolia ratified Oyu Tolgoi gold and copper deposit feasibility study and thus, all conditions for the investment agreement signed on Oct 6, 2009 have been met and the agreement has become effective.

The agreement was subject to administrative and procedural conditions that must be met by April 6 including the completion of a feasibility study, within 6 months after it was signed last year.

Ivanhoe and Rio Tinto are owners of the huge gold and copper deposit in South Gobi region of Mongolia and signed investment agreement with the Mongolian government in October last year. Government of Mongolia to own 34% stake in the project.

Rio Tinto owns 22.4% stake in Ivanhoe and has an option to take it up to 46.6% eventually.

By Battsetseg, reporter of Moninfo News Service