BE Assignment

Keshav Agarwal | IPM02179

Situation

Matt Lelander, representing Minera Inc., travels to Mongolia to address challenges with the
Oyu Tolgoi mine, co-owned by Minera and the Mongolian government. This critical mine for
Mongolia's economy faces renegotiation of profit sharing and permit renewals, creating
uncertainty that threatens the entire project and spooks Minera's investors.

Actors

* Minera Inc.
* Mongolian Government
* Mongolian people

Problem

The Mongolian government's renegotiation of the mine contract and permit renewal creates
instability. This, along with growing local protests due to a chemical leak, jeopardizes the
current deal and future investments. The government's revision of mining laws for a bigger
cut and stricter controls worries investors, causing Minera's stock price to fall.

Limitations

* Growing local protests

* Increased competition from other mining firms
* Mongolian government's history of seizing competitor's permits
* Declining investor confidence due to Mongolian government actions

Alternatives

* Minera can offer Mongolia a larger share of profits to secure permits and maintain
investment.
* Minera can abandon the project and focus on more stable regions.

Potential Solutions

* Minera can collaborate with Mongolia to address local concerns and ensure environmental
responsibility. This might involve investing in communities or public relations efforts to
highlight project benefits and counter bad publicity.