Rio Tinto rejects Mongolian request to renegotiate terms for Oyu Tolgoi

Mining giant Rio Tinto, by way of its subsidiary Turquoise Hill Resources (formerly known as Ivanhoe Mines), have rejected a request from Mongolia to renegotiate the investment agreement for its Oyu Tolgoi mine, the world's largest undeveloped copper-gold project. The Mongolian government is pushing to review the deal, signed in October 2009 and into effect in March 2010.

Last August, the country’s new mining minister said the government should try to raise its stake in Oyu Tolgoi, which will become one of the world's largest copper-gold mines when it reaches full production in 2018. Under the current agreement, Turquoise Hill owns 66% of Oyu Tolgoi while Mongolia owns the remaining 34%. The Asian nation can increase its stake to 50% only after an initial period of 30 years of commercial production but is pushing to do it now.