TORONTO (miningweekly.com) – The national Parliament of Mongolia has concluded its extraordinary winter session without approving a draft investment agreement for Rio Tinto and Ivanhoe Mines' Oyu Tolgoi mine, Ivanhoe reported on Friday.

However, the agreement will continue to be a “principal priority” for the country's coalition government when Parliament begins its spring session in the first week of April, Ivanhoe said, citing a statement issued by the parliamentary press office.

Ivanhoe shares fell 9,37% on Friday, to C$5,61 apiece by 15:20 in Toronto. The stock dropped as low as C$5,34 earlier in the day.

Parliament began its review of the document this week, after it was endorsed earlier in the month by the nation's Cabinet.

The statement indicated that the standing committee on economics had made “significant progress” in discussing the agreement this week and that members of Parliament had requested that a “small number” of points be reviewed, Ivanhoe reported.

A working group formed to address the issues would continue its review during the break between the extraordinary winter session of Parliament, which ended on Friday, and the beginning of the regular spring session of Parliament in early April.

Ivanhoe Mines and Rio Tinto will cooperate with the working group during the parliamentary recess to prepare additional information to facilitate an early approval by Parliament, the firm added.

The investment agreement requires parliamentary approval before it can be effected, as well as the approval of the boards of directors of Ivanhoe and Rio.

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.

In 2007, after five years of negotiations, the Mongolian cabinet 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 was to report to Parliament.

However, Prime Minister Sanjaa Bayar, who was elected in November 2007, withdrew the document for further review, and the process was stalled for much of 2008, partly because of the Parliamentary elections held in June , which were followed by the formation of a government of national unity.

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