The government cancelled an agreement signed in 2014, which provided a framework for cooperation on a comprehensive energy plan for the South Gobi region.
The two had been looking into a power plant in Tavan Tolgoi coalfields.
The deal met Oyu Tolgoi’s obligation, under the 2009 investment agreement with the government, to establish a long-term power supply solution in Mongolia within four years of commercial production.
As a result of its cancellation, Rio and subsidiary Turquoise Hill Resources have four years from yesterday to find a domestic source of power.
Rio noted that it and Turquoise Hill were committed to fulfilling all commitments under the agreement and were ...