Following his visit to Mongolia, Canada’s trade minister has warned the Mongolian government that continued delays in the Oyu Tolgoi project could cause mining companies to leave Mongolia.

"I communicated that to them, and they understand that well. If you get to the point where significant investors are pulling out, it will be very difficult to reverse that," Canadian International Trade Minister David Emerson told the Globe and Mail.

Canada has over 20 mining companies operating in Mongolia. The largest, Ivanhoe Mines, has recently been told it will be necessary to renegotiate a mining agreement the company previously spent five years negotiating with Mongolian governments.

The mammoth Oyu Tolgoi copper and gold mine is being developed by Ivanhoe and partner Rio Tinto. Mongolia is to retain 34 percent ownership in the mine. However, the newly elected government of  Mongolia withdrew the Oyu Tolgoi agreement from consideration by parliament and said it will seek a larger percentage of the profits.

Speaking in Beijing on the second stop of his Asian trip, Emerson said, "I think there is a good likelihood that some of the projects caught in this period of debate hopefully will move along, but we'll just have to wait and see.”

"Mongolia has, in fact, requested Canada to give them advice on how to put in place a sound regulatory and tax regime dealing with the mineral sector," he added. "They want to move forward, they want to see some significant projects proceed."

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