Main Mongolia parties OK Oyu Tolgoi plan-source

TORONTO, July 8 (Reuters) - The caucuses of both major political parties in Mongolia's coalition government have approved Ivanhoe Mines Ltd's (IVN.TO) flagship Oyu Tolgoi copper-gold project in Mongolia, but the plan still needs parliamentary approval, a source familiar with the situation said on Wednesday.

"The caucuses of the two major political parties have approved the draft investment agreement. This agreement now goes to parliament for discussion," said a source, who declined to be named due to the political sensitivity of the situation.

The source said the proposal as it currently stands does not envisage a windfall gains tax, but it does include an upfront tax payment of $125 million. (Reporting by Euan Rocha; editing by Janet Guttsman)