ULAANBAATAR, Mongolia - Rio Tinto and the Government of Mongolia have reached agreement to adjust the shareholder loan interest rate for the Oyu Tolgoi project1, in line with the requirement under the Shareholders Agreement to periodically review the appropriateness of the rate.
Rio Tinto and the Government of Mongolia have also agreed to work together to resolve matters relating to the Entrée mine lease areas in a timely manner and bring forward distributions to shareholders.
Rio Tinto Copper Chief Executive Katie Jackson said: "This agreement, along with the agreement in principle on management fees reached in May, demonstrates Rio Tinto's ongoing commitment to the long-term success of Oyu Tolgoi and our partnership with the Government of Mongolia. The adjusted rate reflects a forward-looking assessment of Oyu Tolgoi's risk profile as the project matures to a lower risk, steady state operation that will achieve its full potential for the benefit of all parties."
The ramp up of production at Oyu Tolgoi remains on track to deliver an average of around 500ktpa2 of copper from 2028 to 2036. As the largest-ever foreign direct investment made in Mongolia, Oyu Tolgoi employs around 17,000 people, 97.8% of which are Mongolian, and has returned $6.1 billion in taxes, fees, and other payments since 2010.
1 Oyu Tolgoi LLC is jointly owned by Rio Tinto, which holds a 66% interest, and the Government of Mongolia, through Erdenes Oyu Tolgoi, which owns 34%.
2 100% basis and stated as recoverable metal.
