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Agreement of May 18This link contains another link to the details of the agreement between the Mongolian Gov't and Turquoise Hills on May 18. http://seekingalpha.com/news/2543416-rio-tinto-to-raise-up-to-6b-for-oyu-tolgoi-mine-expansion?uprof=38#email_link Having quickly skimmed ithe agreement, my impression is that Rio is in no hurry to fully exploit the potential of ETG's tenements: Article 4.1 "b) Underground Stage means the construction of Hugo North Lift 1 underground mine and modification of the concentrator and infrastructure to handle underground ore, as described in the UG FS. For the avoidance of doubt, the Underground Stage does not include any future underground developments other than Hugo North Lift 1." Also, it does appear that Mongolia will remain as a 34% shareholder of OTLLC and will have to pay. It's share of the development costs of Phase II: 5.5 b) "(ii) until required for Underground Stage construction, all funds prepaid pursuant to paragraph (i) will be deposited by TRQ onto the Rio Tinto group balance sheet in exchange for an offset to the Project Finance Guarantee Charge (as set out in paragraph (v) below). Total funds held on Rio Tinto balance sheet should not exceed USD 4.2 billion or the total amount of the UG Project Finance facility;" Somewhat disappointing. 2 years of bickering and posturing for this...? Not much gained except another small step by the Mongos in accepting foreigners on their soil to exploit THEIR resources. How slowly mentalities change. Surf |
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Msg # | Subject | Author | Recs | Date Posted |
7544 | Re: Agreement of May 18 | landowner | 0 | 5/27/2015 8:43:00 PM |