Skip to main content

Advertisement

Advertisement

Business

Rio Tinto ready to cut rates on loans to Mongolia for Oyu Tolgoi development - FT

Rio Tinto ready to cut rates on loans to Mongolia for Oyu Tolgoi development - FT

FILE PHOTO: Mining trucks are seen at the Oyu Tolgoi mine in Mongolia's South Gobi region June 23, 2012. REUTERS/David Stanway/File Photo

Global miner Rio Tinto is willing to cut interest rates on loans to the Mongolian government, given to fund its share of the construction costs at the Oyu Tolgoi copper-gold mine, the Financial Times reported on Monday.

In exchange for the cuts, Rio wants several regulatory and budgetary issues resolved and a long-term power agreement for Oyu Tolgoi, the FT reported https://www.ft.com/content/9e3e015e-113b-4be7-a51e-1b00cab85201, citing a letter from Rio Tinto to Mongolia's prime minister last week.

Earlier this month, an independent review of cost overruns at the project had suggested that they were not caused by geology issues, and had raised "certain questions in relation to the project management process".

Rio and Turquoise Hill Resources in April reached an agreement over funding to expand the mine. The mine is 34per cent-owned by the Mongolian government with the rest held by Turquoise Hill, in which Rio owns a 50.8per cent stake.

(Reporting by Soumyajit Saha in Bengaluru; Editing by Vinay Dwivedi)

Source: Reuters

Advertisement

Also worth reading

Advertisement