TRQ - Rio Tinto disputes report that mismanagement caused Oyu Tolgoi troubles

Rio Tinto (RIO +2.3%) is challenging the findings of an independent review into $1.4B of cost overruns and delays at its Oyu Tolgoi mine in Mongolia, maintaining that the project's problems have been caused by difficult geology and not mismanagement, Financial Times reports. The Independent Consulting Group's report concluded last month that poor management was the main reason the mine's underground expansion project has taken longer and cost more than expected. Rio reportedly has told Mongolia's justice minister that the ICG did not sufficiently recognize the full impact of weaker than expected rock conditions, which had meant the mine had to be redesigned. FT says Rio's response could increase tensions with the Mongolian government, which has called for more transparency from the miner. Turquoise Hill Resources (TRQ +4.4%), 50.8% owned by Rio, owns 66% of Oyu Tolgoi, with the rest held by the Mongolian government.

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Rio Tinto disputes report that mismanagement caused Oyu Tolgoi troubles