Mongolia Seeks New Oyu Tolgoi Deal From Rio Tinto

The move comes amidst significant parliamentary pressure and ahead of presidential elections, with the government seeking better financial terms for its 34% stake in the project. The mine, Rio Tinto's most crucial project, is currently US$1.5 billion over budget and nearly two years behind schedule, prompting Ulan Bator to request a mutual termination of the existing deal.

While aiming to secure greater economic benefits, Mongolia is cautious not to act unilaterally, fearing a deterrent effect on future foreign investment. Rio Tinto, through its controlled entity Turquoise Hill Resources, has indicated a willingness to discuss reductions in project management fees and loan interest rates.

However, the Anglo-Australian miner also seeks resolution on its own concerns, including a long-term power solution and the 2021 budget. Oyu Tolgoi is projected to become the world's fourth-largest copper mine at peak production, generating substantial revenue and jobs for Mongolia.