Vancouver-based Ivanhoe Mines and diversified miner Rio Tinto on Friday affirmed their intention to continue investment in the Oyu Tolgoi cooper/gold project, in Mongolia.

The companies said that they were looking forward to engaging in negotiations with the new Mongolian government, in an effort to conclude an investment agreement for the development of the project.

Mining Weekly Online previously reported that after five years of negotiations, the Mongolian cabinet approved a draft deal in 2007, which would give the government a 34% interest in the property.

A working group comprised of Members of Parliament from the parliamentary Standing Committee on the Economy, which was to report to Parliament, was then reviewing the agreement. However, Prime Minister Sanjaa Bayar, who was elected in November last year, had withdrawn the document and wanted the agreement to be reviewed by his new cabinet.

A new working group was to report on the proposed changes of the country’s Mineral Law by November 15, which the government wished to update and bring into effect before a resumption of discussions on an investment strategy for the Oyu Tolgoi project.

“We are encouraged by the initial steps that have been taken by the new Mongolian government, and by the communications that we have had with government representatives,” said Rio Tinto CE for copper and diamonds, Bret Clayton.

“We are looking forward to engaging with the government as soon as possible to complete a competitive investment agreement that recognises the realities of the current international investment environment.”

Ivanhoe Mines president and CEO, John Macken, stated that the mining companies were confident that the agreement could be appropriately updated to address the current interests of the investors and the people of Mongolia, to enable construction of the project to proceed.

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