New Oyu Tolgoi Negotiations May be Very Easy

There is yet another report that the Mining Minister of Mongolia Ganhuyag Davaajav wants to renegotiate the Oyu Tolgoi agreement. Thanks to this tweet by M.A.D. Investment Solutions for the link.

As far as I know, Torquoise Hill Resources (formerly Ivanhoe), the partner of that agreement, has not agreed to any such renegotiation.

But, just for the fun of the exercise, let’s imagine how such a negotiation might play out:

Mongolian Government: “We want you to increase our share to 50%.”

Torquoise: “How much do you intend to pay for that?”

Mongolian Government: “Nothing.”

Torquoise: “Why should we be interested in giving you shares without any payment?”

Mongolian Government: “We don’t care. Just give us the shares.”

Torquoise: “It has been nice talking to you. We prefer keeping the current agreement.”

See? That would be really easy. And the result would be rather predictable.

Published by kflenz

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

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