TORONTO (miningweekly.com) – The Mongolian Parliament has set a deadline for the completion of a crucial draft investment agreement for the Oyu Tolgoi copper/gold project, Ivanhoe Mines, which co-owns the giant deposit with Rio Tinto, said on Friday.

The company said in a statement that 42 members out of 50 Members of Parliament voted on Thursday to adopt a resolution that authorises the Mongolian government, led by Prime Minister Sanjaa Bayar, to negotiate a draft deal for Oyu Tolgoi and present it to Parliament before February 1, 2009.

The parliamentary resolution proposes that the government seeks assistance from internationally recognised experts in concluding the agreement, Ivanhoe said

Rio Tinto and Ivanhoe have been waiting for years for an agreement with the government, which would open the way for the development of what the two companies have touted as the world's largest undeveloped copper/gold project.

After five years of negotiations, the Mongolian cabinet last year approved a draft deal, which would give the government a 34% interest in the property.

The agreement was then being reviewed by a working group, which consisted of Members of Parliament from the parliamentary Standing Committee on the Economy, which was to report to Parliament.

However, Bayar, who was elected in November last year, withdrew the document for further review.

Not much progress has been seen since, partly because of Parliamentary elections held in June this year, which were followed by the formation of a government of national unity.

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