Rio Tinto, Turquoise Hill Mine Could See Delays Over Taxes

The Wall Street Journal Reported today that a large scale mine in Mongolia may see construction delays due to a tax dispute with the Mongolian government. The Oyu Tolgoi Mine is owned by Turquoise Hill Resources (TSX:TRQ), and that company is 50.8 percent owned by Rio Tinto (NYSE:RIO). Production has begun at the mine, but an underground expansion project has not yet moved forward, according to the Journal.

As quoted in the publication:

Canada-listed Turquoise Hill, 50.8%-owned by Rio, said Thursday it had filed a notice of dispute with the Mongolian government, following a recent audit report which claimed unpaid taxes, penalties and disallowed entitlements connected with the initial development of Oyu Tolgoi, potentially one of the world’s largest copper resources estimated to be worth at least $6.2 billion. There will now follow a 60-day period during which Turquoise Hill and the Mongolian government could reach a negotiated settlement. Failing that, the dispute could be referred to international arbitration—a process that could extend delays to the Oyu Tolgoi project.

Click here to read the full Wall Street Journal article.