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Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi
Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion
1, building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.
Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:
Ceasefire in Rioâs civil war with Turquoise Hill
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Rio Tinto and its rebellious subsidiary Turquoise Hill Resources have reached a ceasefire in their dispute over how to fund Mongoliaâs $US6.75 billion Oyu Tolgoi mine, after Rio scaled back its equity raising demands.
Massive cost and schedule blow-outs on an underground expansion of Oyu Tolgoi had left Turquoise Hill unable to fund completion of the project, which will be one of the worldâs top five copper mines if it can get into production as planned.
Rio owns 50.79 per cent of Turquoise Hill and declared in September that the shortfall should be funded by a Turquoise Hill equity raising, apart from $500 million of additional debt that the subsidiary could take on.
Rio Tinto, Turquoise Hill strike funding deal for Oyu Tolgoi
The Oyu Tolgoi mine expansion has seen costs balloon to $6.75 billion, about $1.4 billion higher than Rio’s estimate in 2016. (
Rio Tinto (ASX, LON, NYSE: RIO) and its majority-owned Turquoise Hill Resources (TSX, NYSE: TRQ) have reached a deal that ends a standoff between the companies over funding for an expansion of the massive Oyu Tolgoi copper-gold mine in Mongolia.
The funding plan addresses the remaining $2.3 billion needed for the underground project, building on and replacing deals set up under a memorandum of understanding inked in September last year.
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Turquoise Hill Resources and Rio Tinto Reach Binding Agreement on Funding Plan for Oyu Tolgoi
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MONTREAL, April 9, 2021 /PRNewswire/ - Turquoise Hill Resources Ltd. ( Turquoise Hill or the Company ) and Rio Tinto today announced that they have entered into a binding Heads of Agreement (HoA) to provide an updated funding plan (the Funding Plan ) for the completion of the Oyu Tolgoi LLC (OT) underground project in Mongolia. The Funding Plan is designed to address the estimated remaining funding requirement of approximately US$2.3 billion[1] and replaces the non-binding Memorandum of Understanding that Rio Tinto and Turquoise Hill previously entered into on September 9, 2020.
Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the Funding Plan ) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion[1], building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020. Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will: