Mongolia says changes agreed with Rio Tinto (ASX:RIO) to the Oyu Tolgoi Copper-Gold Project’s shareholders’ agreement are expected to increase its future returns by about ₮13 trillion ($5.07 billion).
Prime Minister Nyam-Osoryn Uchral outlined the changes, which include lower management fees and reduced interest on shareholder loans, according to MNB World, the international service of Mongolia’s national public broadcaster.
The Mongolian Government estimates total project cost savings of approximately ₮30 trillion. This comprises about ₮8 trillion from lower management fees and removing overlapping costs, and ₮22 trillion from reduced loan interest.
Mongolian representatives also say the parties have agreed to begin dividend distributions in 2027. The report indicates that teams from both sides will continue working to finalise arrangements.
The update follows Rio Tinto’s June announcement confirming an agreement to adjust the project’s shareholder loan interest rate. That disclosure also referred to an agreement in principle on management fees reached in May and cooperation to bring forward shareholder distributions.
Rio Tinto holds 66% of Oyu Tolgoi, while Mongolia owns the remaining 34% through state-owned Erdenes Oyu Tolgoi.
The mine’s underground expansion is ramping up, with Rio Tinto targeting average copper production of about 500,000 tonnes annually from 2028–2036 on a whole-project basis.
Oyu Tolgoi is a copper and gold mining operation in Mongolia’s South Gobi region.
Write to France Pinzon at Mining.com.au
Images: Rio Tinto
