Rio Mongolian Mine Failure Would Be ‘Catastrophe,’ Minister Says
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Mongolia’s businesses could face a “catastrophe,” if Rio Tinto Group and the government cannot resolve a dispute over funding the Oyu Tolgoi copper and gold mine, the deputy minister for economic development said.
While the two parties met last week to decide on financing the project through this year, disagreements on taxes, cost overruns and management control resulted in a one-month stop-gap budget. Rio Tinto in March will shoulder all the costs for a mine that at full production will account for 30 percent of Mongolia’s economy.