22 June 2009
Mind the Mines. Mongolia’s Chess on a Golden Board.
Posted by khuushuur under: mining .
Elbegdorj at Bloomberg
This post has received a buzzload of comments on its reposting on Mongolia Web News.
Watching Elbegdorj on Bloomberg made me a bit puzzled. Why was he telling several times, basically begging, how he wanted investors to not “close the door”? Wasn’t it the investors that should be begging the new president? But then i recalled the buzz in town that if nothing would happen before Nadaam, the whole deal would be off.
So it might be true. The president is presured by the foreign investors to get the deal in this session of parliament. But Elbegdorj only just comes in and wants to put his mark on the deal. “An equity share is not a good proposal,” he said in the interview. Indicating he want to change some basic rules of the game. This leaves him between a rock and a hard place. So hee came in right in time to be able to be part of the deal, but it seems the choice is a deal he doesnt like or no deal at all. But it seems he doesnt want neither: He is asking the investors to hang on and give him time to get the deal he wants.
So if indeed the hard deadline is for July 10, what will happen if there is no deal struck? Will Ivanhoe Mines (IVN) leave? Will Rio Tinto back off? The future is unsure, but it looks like we will know a lot more when the horses start racing and the wrestlers are slapping their thighs on Mongolia’s natioanl Naadam holiday on July 11th.
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