Mongolia anti-graft body probes 2009 Oyu Tolgoi deal

From Reuters - March 14, 2018

ULAANBAATAR (Reuters) - Anti-graft authorities in Mongolia are investigating a 2009 investment pact that kickstarted development at the Oyu Tolgoi copper-gold mine now run by Rio Tinto, which helped open Mongolia to foreign investors.

Turquoise Hill Resources, the Rio-controlled unit that owns a 66-percent stake in the mine, said late on Tuesday it had received a request for financial information to assist an investigation into suspected abuses of power by authorized officials when the 2009 pact was negotiated.

There was no indication Oyu Tolgoi was a subject of the investigation, the statement said, without giving details.

A spokesman for the Mongolian government did not immediately respond to a request from Reuters for comment.

The landmark agreement was signed with Robert Friedlands Ivanhoe Mines, which changed its name to Turquoise Hill Resources in 2012. It has long been controversial in Mongolia, with some politicians accusing the government of handing over too much control over big mining projects to foreign interests.


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