Rio and Turquoise Hill agree to OT financing plan

TORONTO-listed Turquoise Hill Resources has ditched arbitration proceedings with parent company Rio Tinto and committed to a rights issue to the tune of US$500 million in the event of funding shortfall for the Oyu Tolgoi copper project in Mongolia.

Rio and Turquoise Hill agree to OT financing plan Rio and Turquoise Hill agree to OT financing plan Rio and Turquoise Hill agree to OT financing plan Rio and Turquoise Hill agree to OT financing plan Rio and Turquoise Hill agree to OT financing plan

Rio Tinto's Oyu Tolgoi asset is a combined openpit and underground copper mining project approximately 235 kilometres east of Mongolia's Ömnögovi Province capital Dalanzadgad

Rio unveiled the new financing plan, which aims to cover an estimated $2.3 billion funding shortfall, on Friday evening. It replaces an MoU struck by the two companies in September.