Turquoise Hill to challenge Mongolian tax claims over Oyu Tolgoi development

|About: Turquoise Hill Resources Ltd. (TRQ)|By:, SA News Editor

Turquoise Hill (TRQ) says it has filed a notice of dispute with Mongolia's government following a recent audit report which claimed unpaid taxes, penalties and disallowed entitlements connected with the initial development of the Oyu Tolgoi copper mine.

TRQ says it has paid all taxes and charges required, and that it "strongly disagrees" with the audit report.

Next comes a 60-day period during which a settlement could be negotiated; if that fails, the dispute could be referred to international arbitration , a process that could add to the often delayed Oyu Tolgoi project.

Rio Tinto (RIO) owns 50.8% of TRQ.