Rio Tinto and Mongolia Revise Oyu Tolgoi Terms, Targeting First Dividends in 2027
Mongolia and Rio Tinto have agreed to amend the financial terms of Oyu Tolgoi, cutting financing and management costs and opening a path to dividends for the government from 2027. The first payment is closer.
The deal follows almost two years of negotiations. The shareholder-loan rate will fall from SOFR plus 6.5% to SOFR plus 4%, while the management fee will be halved.
Mongolia estimates the changes will reduce costs by about MNT30trn ($8.3bn), including roughly MNT22trn in shareholder-loan interest and MNT8trn in management and overlapping costs.
The shareholders have also agreed to bring forward distributions. Mongolia has built at least MNT3trn ($835m) into its 2027 budget as expected Oyu Tolgoi dividend income.
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