Turquoise Hill Resources and Rio Tinto announced today they will commence arbitration to seek clarity with respect to financing for Oyu Tolgoi.
Turquoise Hill said that Rio Tinto’s approach to the financing of the Oyu Tolgoi project “…is incompatible with the Company’s announced strategy to maximize debt and / or hybrid financing for the Oyu Tolgoi project so as to minimize the size, and defer the timing, of an equity rights offering .”
In May Turqouise Hill said Oyu Tolgoi will need an increase in development capital cost of $1.5 billion.
Arbitration will commence in B.C.
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