Although Turquoise Hill Resources submitted a proposal four months ago to attract additional funding for the Oyu Tolgoi (OT) project, Rio Tinto has expressed in no hurry to approve it, according to the Financial Review. Rio Tinto, Chief financial officer Jakob Stausholm emphasized that “Rio Tinto wants clarity over the exact size of the cost blowouts on its Mongolian copper project before approving any funding plan. In addition, we need to finalize discussions with Mongolia’s government on what will be the exact solution initially.” The investor said that the OT project’s extraction opening date will be postponed and that funding will increase by USD 1.2-1.9 billion. Comprehensive estimates are expected to be made in the second quarter and a feasibility study will be presented in the second half of the year. In line with the feasibility study, the Tavan Tolgoi Power Station project which provides OT by energy requires USD 924 million in funding. In addition, the Government of Mongolia and Rio Tinto are going to resolve the Oyu Tolgoi tax issues to international arbitration.Chief executive, Copper & Diamonds of Rio Tinto, Arnaud Soirat noted that both sides agreed we need a third party to be involved to help us understand the contracts and that makes healthy relationships’ said last month.

Published Date:2020-03-11