Mongolia-focused Kincora Copper (CVE:KCC) received a boost on Tuesday - as the government reached agreement with mining giant Rio Tinto (LON:RIO) over expansion at the huge, world class Oyu Tolgoi project.
The administration inked the underground mine development and financing plan with Turquoise Hill Resources and Rio Tinto, meaning work on the US$5bn delayed underground expansion can now begin after a long-running dispute.
The Mongolian prime minister Chimediin Saikhanbileg said: "Mongolia is back to business.
"Oyu Tolgoi is a world-class copper-gold asset and its further development is of great economic significance for Mongolia.
"We have finalised a way forward with our partners which re-establishes the foundations of a new and constructive relationship based on mutual trust and our joint long-term commitment to Mongolia's growth."
It could mean financing could now start to flow on other projects, which will be welcome news to Kincora.
It is developing the Bronze Fox copper-gold deposit in southeast Mongolia, in the Oyu Tolgoi copper belt and around 140km northeast of Oyu Tolgoi.
Earlier this year, it won back Golden Grouse licences that the government had cancelled in 2013 and welcomed changes in Mongolia's investment laws.
Kincora chief executive Sam Spring was quoted as saying this morning "It puts Mongolia back in the game."