Mongolia says Rio Tinto copper mine tax dispute now resolved

Sun Sep 14, 2014 11:59pm EDT
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ULAN BATOR, Sept 15 (Reuters) - A tax dispute that has threatened to delay the giant Oyu Tolgoi copper mine being developed by Rio Tinto in Mongolia has now been resolved, a government official said on Monday.

Mongolia's vice-minister of mining, Oyun Erdenebulgan, told Reuters that the two sides have agreed to cut an outstanding tax bill on the project to $30 million. The authorities delivered a $130 million bill in June.

He said the much-delayed project was set to resume construction in the first quarter of 2015.

The $6.5 billion Oyu Tolgoi project is 66 percent owned by Torquoise Hill Resources, a subsidiary of Rio Tinto. The Mongolian government owns the remaining 34 percent. (Reporting by Terrence Edwards; Writing by David Stanway; Editing by Richard Pullin)