Oyu Tolgoi Renegotiation

Reuters reports that Mongolia’s mining minister Davajav Ganhuyag has called for renegotiate the Oyu Tolgoi Investment Agreement. He was part of a group of Members of Parliament who called for that last year.

The important thing to know about this issue is: Renegotiation is possible only if both parties agree to it. So if the Mongolians come with an offer of acquiring more stakes in the project at a price of ten times market value, the owners might be interested. If, in contrast, they start asking for larger shares without paying any compensation, they would find a much less enthusiastic response.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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