Foreign media news on August 3: Mongolia's prime minister said on Thursday that Mongolia has resolved almost all tax issues with Rio Tinto on the development of the giant Oyu Tolgoi mine (Oyu Tolgoi), and believes that the remaining issues will also be resolved. has been solved. Oyu Tolgoi is expected to become the world's fourth largest copper mine by 2023. But over the past few years, Mongolia and its partners have been in constant disputes over the development of this Gobi Desert mine.
If the tax issue can be resolved, it will avoid the arbitration process and help Mongolia restore relations with Rio Tinto.
Mongolian Prime Minister L. Oyun-Erdene said during his visit to Washington DC that Rio Tinto had to resolve more than 10 issues with the Oyu Tolgoi project in the past, but now more than 90% of them have been successfully resolved. There are still some issues, but he believes that negotiations and discussions with investors can continue in order to finally resolve the remaining issues.
Rio Tinto bought Turquoise Hill's stake in the Oyu Tolgoi mine last year for $3.3 billion to boost development of the mine, which will produce more than 500,000 tonnes a year. Rio Tinto currently holds a 66% stake in the Oyu Tolgoi mine, with the rest held by the Mongolian government.
Rio Tinto agreed last year to forgive $2.4 billion in debt owed by the Mongolian government and pledged to create a corporate structure that would not require additional loan financing after development costs soared to $7.06 billion from $5.3 billion in 2016.
Rio Tinto started producing copper from its underground operations in March and the mine is expected to be a mainstay of profits for years to come.
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