RE:RE:Glencore
Glencore owning Tinto and or TRQ is far from a sure thing. China and Chalco have had a very long relationship with Tinto and this may be very difficult for anyone to undermine. Mongolia is also very leary of anything Chinese in Mongolia and so any deal giving anything Chinese more say in Mongolia would be problematic for Mongolia. China has also way more to gain from low Iron ore prices than from higher Iron ore prices and Glencore is on record as supporting a cut in production to increase prices. Glencore also has a history of being a cut throat comodities trader and buying Tinto would give them a lot more clout in the business so I really do not think China would view this as in China's best interest. In the end, China will do what is best for China and in the end, this may be the card that keeps Tinto and Walsh out of Glencores clutches.
As for the GOM fast tracking Tavan Tolgoi, I suspect that part of this game plan is that they think it will give them leverage with OT by providing another source of revenue for the GOM. If you look at the way the deal is structured due to GOM wanting to maintain ownership, I suspect that they may be in for a nasty suprise where those mining the coal make a proffit and get access to the coal and by the time all the bills are payed, their is little left for Mongolia. I doubt that the GOM really cares though as what will be far more important to them is that up front payment that all these sort of deals come with. It will provide a nice chunk of cash for all the corrupt players in Mongolia to feast on for a while. Look no further than the last coal deal they did with China. ;-)
As the DONK games in Mongolia continue!!!!!.