Minister of Defense Luvsanvandan Bold of Mongolia

Chairman Bold said that the notices were provided to companies that hold exploration licences on mineral deposits that are ready for mining development, and “if the concerned license holders change them into exploitation or pre-exploitation or production licenses in accordance with the Minerals law they are most welcome.

Our main discussion is now around whether the Mongolian government could acquire 51 percent'' of major projects, Bold said in an interview in Calgary yesterday.

Asked if Rio Tinto will be forced to part with 51% of Oyu Tolgoi when the law is amended, Bold said as a private project, this was a slightly different case and factors such as whether the investment has already paid off will be considered before taking a decision.

On other contentious issues such as a windfall tax in key minerals introduced by the government, Bold said while the government wants to move ahead with some changes, they are unlikely to do so until after the elections.

Despite the reported interest from these firms, Bold said an imbalance exists in Mongolia's resources industry.

Bold said it would be hard to limit Russian and Chinese investment, and Mongolia would instead seek to attract additional foreign investment through a stable tax climate and by making improvements in the transport network and other infrastructure.

This windfall tax is one of the obstacles foreign investors think about'' when considering Mongolia, Bold said in Toronto, where he was attending the annual Prospectors and Developers Association Conference.

There will be an agreement'' on Oyu Tolgoi, Bold said in the interview, declining to provide further details.

Mr Bold said a final agreement with Rio Tinto and Ivanhoe Mines Ltd on a USD 3 billion copper and gold project will have to wait until debate on the amendments is over.

Last month Mineral Resource and Petroleum Authority Chairman Luvsanvandan Bold said that the government was considering a law that would give the state 51 percent of all "strategic deposits," up from the current maximum rate of 34 percent for state ownership.