TORONTO (miningweekly.com) – The government of Mongolia will likely announce this week when it plans to sign an investment agreement for Ivanhoe Mines' and Rio Tinto's giant Oyu Tolgoi copper/gold mine.

Just over a month ago, the country's Parliament approved changes to four laws, clearing the way for the long-awaited investment deal, and government officials have indicated that they want the agreement signed by the end of this month.

Ivanhoe and Rio have been trying for more than six years to secure an investment agreement for the huge mine, touted in the past by Rio Tinto as the world's largest undeveloped copper/gold project, and the current version is the third draft agreement for Oyu Tolgoi to be produced in the last two years.

A date could be set “any day now”, a person with knowledge of the situation, but who asked not to be named, said on Tuesday.

Officials have been working to ensure that correct and clear wording is used in the Mongolian version of the agreement, while Prime Minister Sanjaa Bayar has also been out of the country.

Bayar has been in South Korea for medical treatment for most of this month, but it is expected that his return on Wednesday could open the way for the process to move ahead.

The investment agreement gives the government a 34% stake in the Oyu Tolgoi project and will open the way for full-scale construction to start on Oyu Tolgoi.

The mine is expected to produce an average of 450 000 t/y of copper and 330 000 oz/y of gold, over a 35-year life-of-mine.

The deposit contains 78,91-billion pounds of copper resources and 45,19-million ounces of gold, based on a March 2008 resource estimate update.

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