Rio Tinto Limited (ASX:RIO) and Ivanhoe Mines Limited (IVN:TSX, NYSE:IVN, NASDAQ:IVAN) are holding their ground in Mongolia, telling the government they are unwilling to renegotiate the terms of their mining deal, that is according to the Australian Financial Review.
Both Rio and Ivanhoe are joint venture partners in the $US10 billion Oyu Tolgoi mine in Mongolia, the world's largest undeveloped copper-gold project.
Speculation has been intensifying that the Mongolian government is planning to boost its interest in the project from 34 per cent to 50 per cent and introduce a sliding-scale royalty scheme.
The government is understood to be putting the pressure on the miners ahead of an upcoming national election.
The original deal inked in 2009 gives the government the opportunity to increase its stake to 50 per cent after the mine has entered its 30th year.
Rio Tinto posted a net profit of $7.5 billion in the six months to June 30, 2011.
