In the latest chapter of a dispute between UK-based miner Rio Tinto and
the government of Mongolia, the firm has announced that it will cut
1,700 jobs at its Oyu Tolgi plant in Mongolia, as the plant’s $5 billion
expansion is put on hold.
The Board of Directors of "Erdenes Oyu Tolgoi" LLC held a meeting at the
weekend and appointed Da.Ganbold replacing Ts.Sedvanchig as the
Executive Director of the company. The newly appointed Executive
Director Da.Ganbold takes up the post today.
Mongolia wants the planned $5.1 billion expansion at Rio Tinto Group’s
Oyu Tolgoi mine to be financed from cash flow until a dispute over the
cost of the biggest foreign investment in the nation is resolved.
Rio Tinto does not need to seek Mongolian parliamentary approval for a
$4 billion financing package to fund development of an underground mine
at the Oyu Tolgoi copper project, Mongolia"s prime minister said.
Shares in Turquoise Hill Resources, operator of the massive Oyu Tolgoi
mine in Mongolia, dropped 18% after controlling company Rio Tinto said
its putting on hold a $5 billion underground expansion of the mine.