Mongolia picks resource nationalist Ganhuyag as mi In 2011 Mongolia dropped the request to increase the Gov't stake to 50% and kept it at 34%. His appointment as mining minister may create uncertainty for foreign miners again.
https://www.reuters.com/article/2012/08/18/us-mining-mongolia-idUSBRE87H02720120818
By Michael Kohn | ULAN BATOR | Aug 18, 2012
(Reuters) - Mongolia has confirmed resource nationalist Davaajav Ganhuyag as the minister of mining, a move that has sparked speculation over whether the new government intends to review existing mining investment deals for its massive mineral resources...
He was confirmed by parliament in a late session on Friday.
In 2011, Ganhuyag was one of several lawmakers to sign a letter urging Rio Tinto and Turquoise Hill Resources to renegotiate a 2009 agreement for the $13 billion Oyu Tolgoi copper and gold mine and increase the government stake to 50 percent from 34 percent.
At the time Turquoise Hill Resources was known at Ivanhoe Mines. Under the original 2009 agreement, Mongolia can only increase its share to 50 percent after 30 years.
An analyst in Ulan Bator greeted Ganhuyag's appointment with caution.
"Ganhuyag is known to investors for having been tough on the Oyu Tolgoi Investment Agreement. However, we view that his position was motivated by a political battle against the government of the time," Origo Partners analyst Dale Choi, told Reuters.
"Now he is part of the new government himself and does not have to continue with this hardline position. Possibly now he will be bound only by the election platform of the Democratic Party."
(Editing by Ed Lane)