Turquoise Hill Resources Ltd. [TRQ-TSX, NYSE] noted recent media coverage regarding ongoing negotiations between the Government of Mongolia, Rio Tinto PLC [RIO-NYSE, ASX, LSE] and the company regarding the Oyu Tolgoi copper-gold-silver mine located 550 km south of Ulaanbaatar, southern Mongolia.
Turquoise Hill and Rio Tinto have made a joint offer to the Government of Mongolia which aims to reset the relationship and allow all parties to move forward together. The offer includes, among other elements, a proposal to forgive and write-off the entirety of the approximately US$2.3 billion carry account loan owing by the Mongolian-owned shareholder (Erdenes) to the company and cancellation of the UDP agreement on a go-forward basis. The offer follows on months of discussions between Turquoise Hill, Rio Tinto and the Government of Mongolia to understand the Government’s issues and priorities, deliver greater economic value to Mongolia and build a stronger partnership for a prosperous future for all.
Turquoise Hill remains committed to working with the Government of Mongolia to advance the Oyu Tolgoi project for the benefit of all stakeholders, including securing approval for the commencement of the undercut as quickly as is practical following the entering into of a definitive agreement among the parties. Negotiations continue and remain subject to required approvals, with all parties focused on being in a position to finalise an agreement. A further market update will be provided as and when appropriate.
Turquoise Hill is focused on the operation and further development of the Oyu Tolgoi copper-gold mine in southern Mongolia, the company’s principal and only material mineral resource property. Turquoise Hill’s ownership of the Oyu Tolgoi mine is held through a 66% interest in Oyu Tolgoi LLC; the remaining 34% interest is held by Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity.
In early trading on Monday, December 13, shares of Turquoise Hill gained $2.72 to $21.33.