Rio Tinto and Mongolian Government Reach Agreement to Reduce Shareholder Loan Interest Rate for Oyu Tolgoi Copper Mine

en.Wedoany.com Reported - On June 30, 2026, Rio Tinto and the Mongolian government formally reached an agreement to reduce the shareholder loan interest rate for the Oyu Tolgoi project. This financial restructuring aims to alleviate the long-standing concerns of the Mongolian government regarding the $16.3 billion shareholder loan debt burden, lower project financing costs, and accelerate the process of distributing dividends to Mongolian shareholders in the future.

Under the agreement, both parties reduced the financing costs of billions of dollars in shareholder loans for the Oyu Tolgoi project. Rio Tinto stated that as the underground mine gradually enters a mature and stable commercial operation phase, the project's risk level has significantly decreased. This agreement further implements the preliminary agreement reached by both parties at the end of May 2026, and is expected to save a total of approximately $2.2 billion in costs over the entire project lifecycle. Both parties also formally committed to accelerating the resolution of the long-pending mining license and tax valuation disputes in the Entrée Resources joint venture area.

The Oyu Tolgoi underground block caving mining project is progressing as planned. Between 2028 and 2036, the mine is expected to produce an average of approximately 500,000 tonnes of copper annually, making it the world's fourth-largest copper mine. Oyu Tolgoi currently contributes more than 10% of Mongolia's gross domestic product and has paid over $6.1 billion in taxes and other payments to the Mongolian government since 2010.

This reduction in the shareholder loan interest rate represents new progress in the years-long coordination of interests between Rio Tinto and the Mongolian government regarding the Oyu Tolgoi project, and is expected to enable earlier dividend distributions to Mongolia.