ULAN BATOR, Aug 18 (Reuters) - Mongolia has confirmed resource nationalis
t Davaajav Ganhuyag as the minister of mining, a move that has sparked speculation over whether the new government intends to review existing mining investment deals for its massive mineral resources.
Ganhuyag, 49-year old chemical engineer and ruling Democratic Party member, previously demanded that some contracts with foreign mining companies in Mongolia be renegotiated to give the state a larger stake in the biggest mines.
He was confirmed by parliament in a late session on Friday.
In 2011, Ganhuyag was one of several lawmakers to sign a letter urging Rio Tinto and Turquoise Hill Resources to renegotiate a 2009 agreement for the $13 billion Oyu Tolgoi copper and gold mine and increase the government stake to 50 percent from 34 percent.
At the time Turquoise Hill Resources was known at Ivanhoe Mines. Under the original 2009 agreement, Mongolia can only increase its share to 50 percent after 30 years.
An analyst in Ulan Bator greeted Ganhuyag's appointment with caution.
'Ganhuyag is known to investors for having been tough on the Oyu Tolgoi Investment Agreement. However, we view that his position was motivated by a political battle against the government of the time,' Origo Partners analyst Dale Choi, told Reuters.
'Now he is part of the new government himself and does not have to continue with this hardline position. Possibly now he will be bound only by the election platform of the Democratic Party.'
COPYRIGHT Copyright Thomson Reuters 2012. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.