Rio Tinto delays Oyu Tolgoi expansion

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Rio Tinto (RIO) puts on hold all work on the underground expansion of the Oyu Tolgoi copper mine in Mongolia after the government says parliament will need to approve an anticipated $5B in financing for the project.

Mongolia's government has grown increasingly concerned about the cost of the project and the potential for a delay in when it starts receiving its share of profit from the mine.

Oyu Tolgoi is 66% owned by Rio's Turquoise Hill (TRQ) unit and 34% by the government.