Creamer Media’s Mining Weekly / Reuters: Mongolia mine law change unlikely to be retroactive

Changes to Mongolia’s investment rules that will allow it to review takeover bids by foreign investors are part of efforts to avoid over-dependence on commodity-hungry China and are not aimed at reviewing existing deals, a government Minister said. Worries over the new rules have unsettled investors in Canadian miner SouthGobi Resources. Earlier this month, China’s state-owned aluminium giant Chalco said it planned to make a proportional bid to all shareholders to buy a 60 percent stake in coal miner SouthGobi. Ivanhoe, which owns a majority stake, has already agreed to tender its shares in favour of the deal. The Mongolian government said after the deal was announced that it would suspend SouthGobi’s licences for its several large coal projects, which are close to the Chinese border, and said it would introduce new foreign investment legislation. To read the full article, click hereMongolia mine law change unlikely to be retroactive

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