1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Rio Tinto plc
  6. News
  7. Summary
    RIO   GB0007188757

RIO TINTO PLC

(RIO)
  Report
Delayed London Stock Exchange  -  05/27 11:37:42 am EDT
5714.00 GBX   +1.47%
05/27UK equities record best week since mid-March
RE
05/27UK equities record best week since mid-March
RE
05/26Entree Resources Starts Arbitration To Enforce Certain Outstanding JV Provisions
MT
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Rio Tinto and Mongolia settle feud over Oyu Tolgoi copper mine

01/24/2022 | 06:50pm EDT

Jan 25 (Reuters) - Rio Tinto Plc and the Mongolian government said on Tuesday they have reached an agreement to end a long-running dispute over the $6.93 billion expansion project for the Oyu Tolgoi copper-gold mining project.

The deal marks a positive development for the Anglo-Australian mining giant, which is reeling from Serbia's rejection last week https://www.reuters.com/article/rio-tinto-serbia/analysis-rio-tinto-has-few-options-to-save-serbia-lithium-mine-none-good-idUSKBN2JY1SZ of its proposed lithium mine as well as local opposition to projects in Guinea, the United States and elsewhere.

"It's a major relief. It's a huge step forward for us," Rio Chief Executive Jakob Stausholm told Reuters via phone from Ulaanbaatar ahead of a flight to the mine site for a ribbon-cutting ceremony later on Tuesday with Prime Minister Oyun-Erdene Luvsannamsrai.

"We are very comfortable with this outcome and, more than anything, achieving a full reset of the relationship," said Stausholm, who became CEO last year.

Stausholm visited Mongolia multiple times in recent months in an attempt to salvage the project amid mounting concerns that the economic benefits of the project for Mongolians were being eroded.

Mongolia owns 34% of Oyu Tolgoi, one of the world's largest-known copper and gold deposits. Rio controls the rest through its 51% stake in Toronto-listed Turquoise Hill Resources Ltd and operates the mine.

As part of the deal, Turquoise Hill will waive $2.4 billion in debt owed to it by the Mongolian government. Additionally, operations will soon start on the underground portion of Oyu Tolgoi, with first production expected in the first half of 2023.

The expansion will be paid for with cash, the rescheduling of existing debt repayments, and prepaid sales of copper concentrate to Turquoise Hill.

The project also committed to buying electricity from the Mongolian grid once it is able to meet supply. Rio said it will work to help add renewable power to the grid. In the meantime, the government extended an agreement to import power from China through 2023.

Rio's original 2009 agreement on the mining project called for the construction of a new coal-fired power plant to supply electricity. The updated deal does not include that plant and instead Rio aims to source wind power, the company said.

Stausholm said the deal's multiple terms reflect "an elegant solution" to the complex issues that had strained relations with the government. "It is possible to do something for the benefit of the people of Mongolia and also for the benefit of our investors," he said.

Luvsannamsrai, Mongolia's prime minister, said the deal "demonstrates to the world that Mongolia can work together with investors in a sustainable manner and become a trusted partner."

(Reporting by Ernest Scheyder in Houston and Praveen Menon in Wellington; Editing by Lisa Shumaker)


© Reuters 2022
All news about RIO TINTO PLC
05/27UK equities record best week since mid-March
RE
05/27UK equities record best week since mid-March
RE
05/26Entree Resources Starts Arbitration To Enforce Certain Outstanding JV Provisions
MT
05/26Australian shares end lower as Fed minutes signal near-term rate hikes
RE
05/24Rio Tinto Resumes Production At Madagascar Mine After Reaching Settlement With Local Pr..
MT
05/24Banks, miners lift Australian shares to near 3-week high
RE
05/24Rio Tinto's Madagascar mine restarts after reaching deal with protesters
RE
05/24Rio Tinto's Madagascar mine restarts after reaching deal with protesters
RE
05/24ELLIS MARTIN : Skyharbour Resources Ltd (VAN:SYH) Secures Option to Acquire an Initial 51%..
AQ
05/24Australian shares close volatile session lower as tech stocks weigh
RE
More news
Analyst Recommendations on RIO TINTO PLC
More recommendations
Financials (USD)
Sales 2022 59 820 M - -
Net income 2022 19 265 M - -
Net cash 2022 2 623 M - -
P/E ratio 2022 6,22x
Yield 2022 12,4%
Capitalization 120 B 120 B -
EV / Sales 2022 1,96x
EV / Sales 2023 2,22x
Nbr of Employees 49 000
Free-Float 65,4%
Chart RIO TINTO PLC
Duration : Period :
Rio Tinto plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends RIO TINTO PLC
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 23
Last Close Price 71,93 $
Average target price 79,48 $
Spread / Average Target 10,5%
EPS Revisions
Managers and Directors
Jakob Stausholm Chief Executive Officer & Executive Director
Peter Lloyd Cunningham Chief Financial Officer & Executive Director
Dominic S. Barton Chairman
Mark Davies Chief Technical Officer
Arnaud Soirat Chief Operating Officer
Sector and Competitors
1st jan.Capi. (M$)
RIO TINTO PLC16.56%119 878
BHP GROUP LIMITED5.23%158 109
GLENCORE PLC40.34%86 606
ANGLO AMERICAN PLC26.09%58 248
GRUPO MÉXICO, S.A.B. DE C.V.14.18%40 546
SAUDI ARABIAN MINING COMPANY (MA'ADEN)56.69%40 350