TRQ - Renegotiated Oyu Tolgoi project could risk further delays cost blowouts

New Rio Tinto (RIO) CEO Jakob Stausholm says he will move swiftly to strengthen the company's relationship with the Mongolian government in an attempt to defuse a deepening dispute over the Oyu Tolgoi underground mine expansion.Rio closed -3.3% and Rio's majority-owned Turquoise Hill Resources (TRQ) ended -19.2% yesterday after the government warned it was dissatisfied with the progress of the Oyu Tolgoi expansion and was considering revoking its 2015 mine development and financing plan unless economic returns improved.Rio says it is open to lifting the benefits to the Mongolian government from the project, as analysts warn looming renegotiations risk causing further delays and cost blowouts, the Sydney Morning Herald reports.The news raises risks around Oyu Tolgoi's timing and budget, and any delays in obtaining approvals beyond this year's H1 may cause value erosion of the project, Morgan Stanley analyst Alain Gabriel says."A potential renegotiation of the mining agreement could result in

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Renegotiated Oyu Tolgoi project could risk further delays, cost blowouts