Mongolians await result of dead heat election race

Mongolians awaited on Monday the results of a general election that saw the country's two main parties in a dead heat and hoping to avoid a deadlock that could stall efforts to tap the vast country's mining wealth.

The Mongolian People's Revolutionary Party (MPRP) appeared to have a slight edge in early returns from rural areas, but the opposition Democratic Party was also confident, with votes in the capital, its traditional stronghold, still uncounted.

"It's quite clear by remarks from both parties that the MPRP is winning in the countryside, but it's not clear by how much," said Luvsandendev Sumati, director of the Sant Maral Foundation, a group that does polling and surveys.

"Ulan Bator is still vague because there is very tough competition. It's very difficult to predict who is winning."

The MPRP ruled Mongolia as a Soviet satellite for much of the last century but has since embraced market reforms and its leader, Sanjaagiin Bayar, is the country's third prime minister in the last four years.

Local television showed a Democratic Party spokesman predicting victory in some rural districts, but added "in several constituencies the race is very tight".

Both parties say they support the ratification of a draft investment agreement that would give the go ahead to Ivanhoe Mines and Rio Tinto to develop the massive Oyu Tolgoi copper and gold project.

It could also open the door to other deals for coal and uranium that lie beneath the vast steppes and deserts of the country whose empire under Genghis Khan stretched as far west as Hungary and where many are nomadic herders.

But several smaller parties are more cautious on mining deals that they fear could give away the country's wealth to foreigners, and those groups could be in a key position if there is no clear majority in parliament.

International observers said overall the vote in Mongolia, which has been praised as a model of democracy in Central Asia, was free and fair.

"From our observations, the process appears to have been fair and transparent," said Bill Infante, the Asia Foundation's country representative in Mongolia.

Mongolia's Election Commission said a final result would not be likely until Monday evening at the earliest, but if there were disputes in some districts it could be much later.

A move away from the first-past-the-post system to multi-member constituencies has also resulted in some confusion over counting and more difficulty predicting results.

Mongolians expressed a desire for a clear majority after the previous election resulted in a hung parliament that produced a series of unstable coalitions.

"People who are capable of acting should be in government," said Munkhjargal Lkhavgaa, 63. "Then maybe things will move forward."