PM N. Uchral: Oyu Tolgoi Management Costs Reduced by USD 2.2 Billion

Prime Minister N. Uchral announced on Monday (June 30, 2026) that the Government has reached agreements with Rio Tinto to reduce Oyu Tolgoi’s management costs and shareholder loan interest rates, while also paving the way for Mongolia to begin receiving dividends from the project.

According to the Prime Minister, the Government had already secured an agreement to cut Oyu Tolgoi’s management fees by USD 2.2 billion, or approximately MNT 8 trillion, increasing Mongolia’s share of benefits by USD 1.5 billion (around MNT 5 trillion).

The latest negotiations have also resulted in a reduction of shareholder loan interest rates. Uchral said the move would save USD 6.2 billion, or approximately MNT 22 trillion, that would otherwise have been used to service Oyu Tolgoi’s debt.

“As a result, the potential benefits accruing to Mongolia could increase by USD 2.5 billion, or nearly MNT 8 trillion,” he said.

The Prime Minister further noted that the mechanism for reviewing shareholder loan interest rates has been revised. Previously, interest rates could only be renegotiated once every seven years. Under the new arrangement, the parties will be able to review and discuss the rates every three years.

Uchral also announced that Mongolia is expected to receive dividends from Oyu Tolgoi this year, following an agreement reached with Rio Tinto.

In total, the Government estimates that the negotiations could reduce Oyu Tolgoi-related costs by USD 8.4 billion, or around MNT 30 trillion, while increasing Mongolia’s future benefits by nearly USD 4 billion, equivalent to approximately MNT 13 trillion.

The Prime Minister said the Government would continue working with the investor group to further enhance the benefits generated by the Oyu Tolgoi project.

He also announced the formal launch of negotiations over the Entrée Resources agreement within the Oyu Tolgoi deposit and instructed relevant ministers to prepare a proposal, consistent with the Constitution, on increasing the benefits accruing to the Mongolian people and submit it to Parliament.

Uchral thanked Finance Minister Z. Mendsaikhan, Minister of Industry and Mineral Resources G. Damdinyam, Cabinet Secretariat Chief B. Enkhbayar and members of the negotiating team for their work in concluding the agreements.

“Mongolia’s mineral wealth must benefit the Mongolian people,” the Prime Minister said, adding that the latest agreements demonstrate the country’s ability to defend its national interests while continuing to support and protect foreign investment.