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Parliament Grills Oyu Tolgoi on Loan Costs and Mongolia’s Take in Document-Driven Hearings

Lawmakers are testing whether high‑interest shareholder loans and related‑party fees have diluted the state’s returns.

Overview

  • The temporary oversight committee held its second day of evidentiary proceedings under Resolution No.62, summoning 109 witnesses, serving 104 notices and expecting 84 participants.
  • The General Tax Authority reported Oyu Tolgoi has paid a cumulative MNT 6.4 trillion in taxes, fees and charges from 2001 through September 5, 2025.
  • Company finance officials said the shareholders’ loan averaged 7.2% interest through 2022 and is about 10.9% now, while outside analyses presented to the hearing cited figures up to roughly 11.3%.
  • A Mongolian board member said Rio Tinto and affiliates had received about $2.2 billion by July 2025 in guarantee fees, management charges and contract payments, figures pressed by MPs during questioning.
  • Oyu Tolgoi’s CEO said the mine turned positive cash flow in 2025 but remains heavily indebted, as members raised concerns over limited state influence on the nine‑member board and the capacity of Erdenes Oyu Tolgoi.