Rio Tinto's Turquoise Hill Challenges Mongolian Tax Claims
June 26 2014 - 7:54AM
Dow Jones News
By Alexis Flynn
LONDON-- Turquoise Hill Resources Ltd. has filed a dispute
notice with the Mongolian government, contesting an audit from the
country's tax authorities that claimed unpaid taxes and penalties
which could lead to delays in investment in a major copper and gold
mine in the country.
Turquoise Hill, the Rio Tinto-owned company that owns the rights
to the $6.2 billion Oyu Tolgoi copper and gold mine, said Thursday
that the move could lead to international arbitration if talks to
resolve the dispute didn't succeed within the next two months.
An enormous copper trove that could eventually represent a third
of landlocked Mongolia's economy, Oyu Tolgoi has been beset by
delays and complicated negotiations between Rio Tinto, Turquoise
Hill and the government. In its statement, Turquoise Hill said
outstanding issues such as tax claims would need to be resolved
before more investment in the mine's underground development could
proceed.
Write to Alexis Flynn at alexis.flynn@wsj.com
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