Rio Tinto Extends Funding to Project

The Rio Tinto subsidiary overseeing the Oyu Tolgui gold and copper project, Turquoise Hill Resources Ltd had announced that an extension on construction funding has been provided while discussions are ongoing with the Mongolian government to find a settlement for their dispute.

According to a statement, "The Oyu Tolgoi LLC board has approved continued funding to progress the project. All parties have agreed to continue discussions during March 2013 with a goal of resolving the issues in the near term."

Turquoise Hill owns 66% for the Rio Tinto Group while the remaining 34% are state backed shares. The construction budget was approved up until the end of February and a board meeting discussed issues such as funding for the continuation of the US$6.6 billion project, cost overruns and other disputes.

When Mongolian President Tsakhia Elbegdorj called out the company to allow the government more control over the project, as it would comprise nearly 30% of the country's economic output when fully operational.