Ivanhoe Mines said on Monday it has advised the Mongolian government it is not prepared to renegotiate a landmark ownership deal at the massive Oyu Tolgoi copper-gold project in Mongolia's South Gobi region.
The Canadian company said it was responding to a request from a Mongolian cabinet representative late last week inviting Ivanhoe, along with its major shareholder and development partner, Rio Tinto , to discuss changes to the agreement.
Shares of the Vancouver-based Ivanhoe were up 1.52 percent at C$14.67 on Monday morning on the Toronto Stock Exchange even though copper prices hit a 14-month low on worries over the debt crisis in Greece.
Ivanhoe owns 66 percent of Oyu Tolgoi, with the rest held by the Mongolian government. Under an investment agreement negotiated in 2009, Mongolia can raise its stake to 50 percent after 30 years.
Late last month, Mongolia said it may seek to renegotiate the deal to speed up the timetable for raising its stake.
Ivanhoe said it will not renegotiate the deal and it expects that all parties will continue to honor the exsisting agreement.