14 C
Belgrade
Supported byspot_img
spot_img

Mongolia asks for better deal with Rio Tinto for copper mine expansion

Member of Europium Groupspot_img
Supported byspot_img

Mongolia is seeking agreement with Rio to terminate a deal to expand the mine and replace it with a new pact that offers better terms. The country wants more tax revenue under a revised deal to expand Rio Tinto’s Oyu Tolgoi copper-gold mine rather than a larger ownership stake in the project, a person with direct knowledge of the government’s thinking told Reuters, as the two sides bid to resolve a long-running standoff over the development.

“We obviously would like to have more tax revenues,” the person said, declining to be identified owing to the sensitivity of the issue.

The mine is one of the world’s largest-known copper and gold deposits. The government holds a 34% stake in the $6.75 billion project, while Rio Tinto-controlled Turquoise Hill owns the rest. Ulaanbaatar has previously told Rio it was concerned that the economic benefits of developing the mine have been eroded due to the significant increase in costs. Under current plans, Ulaanbaatar won’t receive dividends until 2051 while Oyu Tolgoi won’t pay “meaningful” corporate income tax, the person said. “That’s really concerning.” Rio did not immediately return a request for comment.

Supported by

The miner on its website says Oyu Tolgoi has paid the government more than $2.7-billion in taxes, fees and other payments since 2010. The source said government representatives met last week with Bold Baatar, a Mongolian national whose recent appointment as head of Rio’s copper operations is widely seen as an attempt to improve government relations and make progress in talks on the project. Baatar has vowed to discuss the plans with the new government and work towards a resolution. The underground expansion will push annual production to nearly 500,000 tonnes per year, making it among the world’s biggest copper mines.

Source: miningweekly.com

 

 

Supported byElevatePR Digital

Related News

Outback Goldfields expands presence in Finland with acquisition of Sakumpu Exploration

Vancouver-based mining company, Outback Goldfields, has finalized a definitive agreement to acquire Sakumpu Exploration, the Finnish subsidiary of S2 Resources. This acquisition involves the...

Strategic collaboration: South Korea’s resource partnership with Mongolia

Nestled just 2000 kilometers away from South Korea, resource-rich Mongolia emerges as a promising ally in Seoul's ongoing quest to diversify its mineral supply...

Balancing act: Mongolia’s pursuit of economic stability beyond mining

Mongolia is actively pursuing international bonds to fuel its economic agenda. However, investor apprehensions linger due to the nation's heavy reliance on mining. While...

Dundee Precious Metals propels Čoka Rakita gold project in Serbia amid promising economic study

Dundee Precious Metals has unveiled a promising preliminary economic assessment (PEA) for its Čoka Rakita gold discovery in Serbia. Despite initial investment of US$381...
Supported by
Supported by
Supported by
error: Content is protected !!