The British mining company has to renegotiate terms of an agreement of copper mine project in Mongolia
The country demands royalty payments and earlier payment date of profit shares.
Mongolian parliament refused draft agreement between the mining company Rio Tinto and Mongolian government. The multi-billion-dollar project concerns the Oyu Tolgoi mine in southern part of the country. Rio Tinto owns 66 % and the rest belongs to Mongolia. Both parts agreed on the investment terms back in 2015.
Nevertheless, 2 years ago the Mongolian parliament set up a working group to revise profitability of the project. According to lawmakers, the deal was never ratified by parliament and was not legally binding. They now demand Rio Tinto to pay royalty payments and to bring near the date when dividend pay off. For now, the expected year is 2041.
Rio Tinto representatives are ready to deal with the Mongolian parliament on final agreement. Nevertheless, the company shares dropped in more than 1 %. Yet, the shares are expected to grow once the situation clears out.
