Negotiations between the Government of Mongolia and investor group Rio Tinto over management fees at the Oyu Tolgoi project entered a new phase on May 19, marking the fourth round of discussions between the two sides. The talks are being led by the Government Working Group established under Prime Ministerial Decree No. 68 with the mandate to reduce project management-related costs.
As an initial outcome, the Mongolian Government and Rio Tinto reached a preliminary agreement to cut Oyu Tolgoi’s project management fees by half and eliminate overlapping charges.
According to the Government, the revised structure could reduce total project costs by USD 2.2 billion while increasing Mongolia’s economic benefit from the project by approximately USD 1.5 billion.
Despite the progress, Minister of Industry and Mineral Resources and head of the working group, G. Damdinnyam, stated that the investor side has not yet responded sufficiently to fully meet the objectives set by the Government of Mongolia. He emphasized that the Government’s position remains unchanged as negotiations continue.
