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Mongolia's political parties are locked in post-election squabbling, but once the dust settles a new government could finally pass deals to tap the coal, copper and uranium that sit beneath its vast deserts and grasslands.
But analysts say the deal that goes ahead would be less than ideal for either Mongolia or foreign investors, with the country better served by taxing its mineral wealth, rather than seeking direct government ownership in massive mines.
The current law gives the state either a 34% stake or a controlling 51 percent stake in mining projects. An investment agreement with Ivanhoe Mines and Rio Tinto for the Oyu Tolgoi project, still under negotiation, would be the first such deal.
Mongolia's political parties are locked in post-election squabbling, but once the dust settles a new government could finally pass deals to tap the coal, copper and uranium that sit beneath its vast deserts and grasslands.
But analysts say the deal that goes ahead would be less than ideal for either Mongolia or foreign investors, with the country better served by taxing its mineral wealth, rather than seeking direct government ownership in massive mines.
The current law gives the state either a 34% stake or a controlling 51 percent stake in mining projects. An investment agreement with Ivanhoe Mines and Rio Tinto for the Oyu Tolgoi project, still under negotiation, would be the first such deal.
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