Mongolia cancels key Oyu Tolgoi licences | MINING.com: "FT.com reports Mongolia has revoked the licences for a key section of Rio Tinto's Oyu Tolgoi giant copper-gold mine.
The London paper reports "Rio is meeting with the government on Wednesday and Thursday, as the two sides are under pressure to reach agreement before funding runs out for the $6.6bn mine.
"If an agreement is not reached either the mine will suspend operations or Rio will extend credit to the mine, according to a person with direct knowledge of the matter."
The Anglo-Australian company has been at loggerheads with the government of the Asian nation over costs, revenues and taxes since a new government laden with resource nationalists took power last year.
Mongolia's president Tsakhiagiin Elbegdorj, who is also the architect of draft legislation being considered by Mongolia's parliament that would place severe restrictions on foreign miners in Mongolia, has accused Rio of working fast and loose with financing for the project."
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