Mongolia threatens to revoke Rio Tinto’s plan for Oyu Tolgoi

The government of Mongolia may cancel and replace the development and financial plan for the country’s vast Oyu Tolgoi copper-gold mine, Turquoise Hill Resources (TSX: TRQ; NYSE: TRQ) said today. The company, which is controlled by Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO), said Mongolian authorities are dissatisfied with its plans and are particularly concerned about the costs of the expansion, recently updated to US$6.75 billion, about US$1.5 billion higher than its original estimate. In 2019 Rio Tinto  flagged stability risks associated with the original project design, which translated into as much as an additional US$1.9 billion cost and a 30-month delay. The miner confirmed the new cost estimate for the underground expansion in December, and noted that production would begin in October 2022. Continue reading at www.northernminer.com.