iVision Tech (BIT:IVN)
Historical Stock Chart
From Oct 2019 to Oct 2024
Statement by John Macken, President and CEO, Ivanhoe Mines ----------------------------------------------------------
VANCOUVER, Sept. 13 /PRNewswire-FirstCall/ -- A story published in the Toronto-based Globe and Mail newspaper today fails again to provide readers with the whole story, in an accurate and balanced manner, arising from a two-day mining conference in Ulaanbaatar, Mongolia.
The alarmist and misleading story headline claims that "Mongolia is ready to grab stake in Ivanhoe Mine," with the secondary headline: "New law could see state owning 34%."
Even the seriously flawed story fails to support the obsessively negative headline. Neither the story, nor any representative of the Mongolian government, has said that the government is about to seize interests in any mining projects in the country. An implication of a grab, or seizure, is that such action could be taken without consent or fair compensation. But that is not the case.
In fact, the newspaper story beneath the headline reports that the government of Mongolia will not confiscate interests in any projects, including Ivanhoe's Oyu Tolgoi copper and gold mine development project, and will indeed ensure that any interest is acquired on a "commercial basis." The story also makes it clear that if the government actually does decide to acquire an interest in Oyu Tolgoi, for example, the interest could be anywhere from 1% up to a maximum of 34% - an important qualification ignored by the headline, which can only create confusion and concern among investors. Ivanhoe previously addressed the issue of potential state participation in a news release issued more than two months ago.
Beyond the headline, the story's principal failings include the following:
- There is nothing in the story to indicate that the government of
Mongolia has decided to exercise its recently approved legislative
option to acquire a stake in the Oyu Tolgoi project. The newspaper
quotes only the view of a single cabinet minister, who is not even a
member of the governing majority MPR party.
- There is nothing in the story to show that the government might
attempt to negotiate a stake in the project before there is a clear
mechanism to ensure that the company receives a fair price for any
such interest. The newspaper once again is indulging in alarmist,
harmful speculation.
- The newspaper failed to report that the leader of the MPRP caucus in
the national parliament, D. Idevkhen, emphatically told the conference
today that the government has the option to acquire up to 34% of
strategic mineral deposits discovered without the use of state funds -
"not 34%; up to 34%." Mr. Idevkhen declared that if the government
decides to exercise its option, "rest assured that the
government...will invest...through equity participation by purchasing
their shares or maybe even through tax negotiations and preferential
tax treatment." The issue, he said, will be addressed by the
parliament.
- The newspaper also failed to report that Mr. Idevkhen told investors:
"Your investment wishes and desires will be met by the Mongolian
government and state. The Mongolian government will remain committed
to securing stability of the investment environment."
- The newspaper failed to report that several prominent government and
opposition members of Parliament told the mining conference that the
windfall profits tax adopted by the Mongolian parliament in May will
either be rescinded, or substantially modified to reduce its potential
financial impact on mining companies. Mr. Idevkhen, leader of the
governing MPRP caucus in Parliament, said earlier today: "I am
convinced that this law will not live long." Mr.Idevkhen's comments
have been widely reported in a more fair and balanced context earlier
today by Reuters and Bloomberg international news services. Some
opposition members of parliament were more scathing in their criticism
of the windfall-profits tax law.
- As government representatives have previously stated, the tax on
higher-priced copper concentrates will not apply if the concentrates
are processed in a smelter in Mongolia. Ivanhoe has previously stated
that it will work with the government of Mongolia to establish
smelting capacity in Mongolia, which could handle Oyu Tolgoi
concentrates. Ivanhoe has been approached by several parties with
proposals to finance a smelter.
- The newspaper failed to report that demonstrators supporting foreign
investment and development of Mongolia's mineral resources lined the
entrance to the conference hall carrying signs with messages for
delegates that included: "Mining is the future of Mongolia," and
"Foreign investment in the mining sector creates jobs."
CONTACT: Information contacts : Investors: Bill Trenaman; Media: Bob Williamson (604) 688-5755
DATASOURCE: Ivanhoe Mines Ltd.
CONTACT: Information contacts : Investors: Bill Trenaman; Media: Bob
Williamson (604) 688-5755