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Mongolia forces Rio Tinto to build power station

Peter Ker
Peter KerResources reporter
Updated

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Rio Tinto could face higher costs on its $US5.3 billion expansion of Mongolia's Oyu Tolgoi mine, after the developing Asian nation ordered the miner to source power for the mine domestically within four years.

The move reinstates an original aspect of the 2009 investment agreement for the mine, and is the latest example of what appears to be growing sovereign risk in the nation.

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Peter Ker covers resource companies for The Australian Financial Review, based in Melbourne. Connect with Peter on Twitter. Email Peter at pker@afr.com

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    Original URL: https://www.afr.com/business/mining/mongolia-forces-rio-tinto-to-build-power-station-20180216-h0w70d