RIO TINTO SETTLES MINING DISPUTE WITH MONGOLIAN GOVERNMENT

Multinational Rio Tinto, Turquoise Hill Resources (TRQ) and the Government of Mongolia have finally reached an agreement that will move the Oyu Tolgoi (OT) project forward, restoring the relationship between the partners and increasing the value the project delivers for Mongolia. Thus, the Mongolian Parliament has passed a resolution resolving the outstanding issues that have been subject to negotiations with the Government of Mongolia for the past two years.

As a result, the TO Board, composed of representatives from Rio Tinto, TRQ and Erdenes Oyu Tolgoi (EOT), which is wholly owned by the Government of Mongolia, has unanimously approved the start of subway operations. This step unlocks the most valuable part of the mine and is expected to begin in the next few days, with first sustainable production expected in the first half of 2023.

Rio Tinto CEO Jakob Stausholm notes that “this agreement represents a restart of our relationship and resolves historical issues between the OT project partners. OT’s subway development will consolidate Rio Tinto’s position as the world’s leading supplier of copper at a time when demand is increasing, driven by its role in enabling decarbonization and electrification in the race to net zero. We will also explore additional opportunities to decarbonize OT’s operations, including sourcing renewable energy.”

Steve Thibeault, interim CEO of Turquoise Hill Resources, adds, “We are very excited to begin work on the undercut, which is critical to unlocking the immense potential of this world-class deposit. This agreement speaks volumes about the positive environment for foreign investment in the country.”

By 2030, OT is expected to be the fourth largest copper mine in the world. It is a complex greenfield project comprising a subway cave mine and copper concentrator, as well as an open pit mine that has been operating successfully for almost ten years.