Oyu Tolgoi to pursue international arbitration
February 20 2020 - 5:00PM
Business Wire
Rio Tinto announces that Oyu Tolgoi LLC (Oyu Tolgoi) has
initiated a formal international arbitration process to seek a
definitive resolution with regard to a dispute with the Mongolian
Tax Authority (MTA), concerning taxes paid by Oyu Tolgoi between
2013 and 2015.
The dispute resolution provisions set out in the 2009 Investment
Agreement (IA) and the 2015 Underground Mine Development and
Financing Plan with the Government of Mongolia call for arbitration
under the United Nations Commission on International Trade Law
(UNCITRAL) arbitration rules, to be heard in London before a panel
of three arbitrators.
On 16 January, 2018, Oyu Tolgoi received a tax assessment for
approximately $155 million from the MTA relating to an audit on
taxes imposed and paid by Oyu Tolgoi between 2013 and 2015. In
January 2018, Oyu Tolgoi paid an amount of $4.8 million to settle
unpaid taxes, fines and penalties for accepted items.
Arnaud Soirat, chief executive Copper & Diamonds, said “We
have worked diligently with the government and tax office
representatives in Mongolia to find a mutually acceptable
settlement and came to the conclusion that arbitration is the best
way forward to resolve this issue.”
Under the UNCITRAL Arbitration Rules, all parties agree that the
arbitral award shall be final and binding on the parties and that
the parties shall carry out the award immediately.
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Category: Oyu Tolgoi
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