TRQ - Turquoise Hill launches arbitration with Rio Tinto on Oyu Tolgoi funding

Turquoise Hill Resources (TRQ) says it is starting arbitration proceedings to clarify provisions of some agreements with Rio Tinto (RIO) related to additional funding for the Oyu Tolgoi copper mine in Mongolia.Turquoise Hill's special board committee says Rio's approach to the financing is incompatible with its strategy of maximizing debt and/or hybrid financing for the project in order to minimize the size and defer the timing of an y potential equity rights offering.Turquoise Hill and Rio were to jointly pursue the debt re-profiling process by engaging with existing project finance lenders, and expected a reduction of up to $1.4B in funding requirements for Oyu Tolgoi.Mongolia's government owns 34% in the project, while Rio's majority-owned Turquoise Hill holds a 66% stake.

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Turquoise Hill launches arbitration with Rio Tinto on Oyu Tolgoi funding