LONDON Entrée Gold
Inc. said two of its joint-venture mining licenses at the Oyu
Tolgoi copper-gold project in Mongolia have been temporarily
suspended by the Mongolian government.
The suspension of the two
licenses means it isnt allowed to sell or transfer the
licenses for now, according to the Vancouver, British
Columbia-based company, in which London-based miner Rio Tinto
Plc owns a 12.9-percent stake.
Contrary to media reports, the
Oyu Tolgoi LLC-Entrée Gold joint-venture mining licenses
havent been canceled, it added.
However, the company has also
received official notification from the Mineral Resources
Authority of Mongolia that an order issued in July 2009 has
been canceled. The order was related to the registration of
reserves linked to the joint-venture deposits, which is one
stage in the process of converting an exploration license into
a mining license, Entrée said. The order wasnt
tied to the issuance of mining licenses.
Entrée has complied with
all Mongolian laws and regulations in connection with the
issuance of the licenses, it said.
The licenses were issued to
Entrée as a condition to entering in October 2009 the
investment agreement between joint-venture partner Oyu Tolgoi,
Rio Tinto Plc, Turquoise Hill Resources Ltd. and the government
The company now plans to work
with Oyu Tolgoi, manager of the manager of the mining complex
of the same name, to resolve the issues with the licenses. Oyu
Tolgoi is responsible for "maintaining the licenses in good
order," Entrée said.
Rio Tinto and Turquoise Hill
Resourcesformerly known as Ivanhoe Minesare major
shareholders of Entrée, with about 12.9 percent and 10.7
percent of issued and outstanding shares, respectively.
Rio Tinto, due to its majority
stake in Vancouver-based Turquoise Hill Resources, beneficially
owns 23.6 percent of Entrées issued and
A version of this article
was first published by AMM sister publication Metal