Rio Tinto will pay $214 million to settle a long-running class action brought by US investors who claimed losses caused by the mining group’s management of its giant Oyu Tolgoi copper project in Mongolia.

Florida hedge fund Pentwater Capital Management and other former shareholders in Canadian company Turquoise Hill Resources (TRQ) will receive payment from Rio, under the terms of the proposed $US138.7 million ($213.6 million) settlement that both parties have put before the Southern District Court of New York for approval.