Turquoise Hill Resources Ltd., a subsidiary of the iron ore mining giant - Rio Tinto Limited (ASX:RIO), announced the commencement of arbitration proceedings against its parent entity seeking clarity on the funding of blowouts at the Mongolian Oyu Tolgoi project.
- The commencement of legal proceedings comes after the recent discussion with Rio Tinto on re-structuring of the Oyu Tolgoi LLC’s existing project debt.
- On 9 September 2020, Turquoise Hill announced the signing of a non-binding Memorandum of Understanding (MOU) between Turquoise Hill and Rio Tinto to pursue re-calibrate the project debt in line with the cash flow projections.
- Rio Tinto traded at $93.27 a share on 6 November 2020 with a market capitalisation of $34.13 billion.
All financial information pertains to Australian Dollar unless stated otherwise.