Rio Tinto faces expiry of Mongolian mine loans
Australia’s export credit agency is one of nearly 20 banks whose commitment to fund Rio Tinto’s Oyu Tolgoi mine in Mongolia is close to expiring, demonstrating the impact that delays are having on the giant copper and gold project.
A plan to expand Oyu Tolgoi has been delayed by disagreements with the Mongolian government, and funding commitments from some commercial banks for stage two of the mine are due to expire within a fortnight.
Rio Tinto secured $US4.2 billion worth of funding for the project from a collection of development banks and commercial banks last year, with the World Bank’s International Finance Corporation leading the way with a commitment to lend $US1.4 billion.
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