Political Turbulence Threatens Mongolia’s Oyu Tolgoi Loan Deal
- Amar Adiya
- Oct 22
- 3 min read
Internal divisions risk locking in costly rates until 2032.
Mongolia’s most ambitious mining project is again caught between global markets and domestic politics. A political crisis has deepened that uncertainty. Parliament’s attempt to oust Prime Minister Gombojav Zandanshatar on October 17 was overturned by the Constitutional Court on October 22, reinstating him but leaving his authority and his cabinet weakened.
The government is pressing Rio Tinto to cut the 11.1 percent interest rate on Oyu Tolgoi’s $12 billion shareholder loan before a December 31 deadline.
Billions in potential state dividends hinge on the outcome. Yet the country’s political instability threatens to derail this rare chance to secure better terms.
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