Tuesday, August 13, 2013

Mongolia to Rio Tinto: fund Oyu Tolgoi mine expansion with cash flow

Mongolia to Rio Tinto: fund Oyu Tolgoi mine expansion with cash flow - Bloomberg | Dispute with Rio Tinto over costs at copper and gold mine partly owned by Ulan Bator continues. Mongolia wants the planned US$5.1 billion expansion of Rio Tinto's Oyu Tolgoi mine to be financed from cash flow until a dispute over the cost of the biggest foreign investment in the country is resolved. Cost overruns at the copper and gold mine, 34 per cent owned by Mongolia, are increasing the debt the government owes to Rio's Turquoise Hill Resources unit, which operates the project, the minister of mining, Davaajav Gankhuyag, said on Friday.