 The Oyutolgoi investment agreement, signed on
October 6, will take full effect on April 6 when operations will formally
begin. Ivanhoe Mines Mongolia Inc (IMMC) has already been renamed Oyutolgoi
LC.
The investor’s technical and economic estimates
were sent back at the end of 2009 for revision. Rumors then spread that the
agreement will be cancelled. It is believed the Mongolian side wanted clarification
on the reserve estimates and water supply. Oyutolgoi LC has said
the disagreement now is limited to only 2-3 minor issues.
USD1 billion has been spent on the project so far. An
external audit is on and tax organizations are also checking documents.
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