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Mongolian Parliament Probes Oyu Tolgoi Financing in Public Hearings

Lawmakers are scrutinizing interest-heavy loan structures and governance to assess Mongolia’s take and weigh capacity upgrades and potential renegotiation.

Overview

  • Oyu Tolgoi has paid 6.4 trillion MNT in taxes, fees and payments from 2001 through September 5, 2025, according to the Tax Authority’s testimony.
  • MPs and experts challenged the project’s shareholder loan terms, citing claims that a $6 billion principal could accrue $19 billion in interest and alleging Rio Tinto benefits from high internal lending rates.
  • Oyu Tolgoi’s CEO said the mine only recently reached positive cash flow in 2025 after major construction and still carries significant debt.
  • Committee leaders called for strengthening the state shareholder Erdenes Oyu Tolgoi to negotiate effectively with Rio Tinto and address governance shortcomings.
  • Separately, the Budget Standing Committee backed sending to plenary a draft resolution directing the government to study abolishing the 2.0% tax on real-estate sale income.