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Bond Market News
Mongolia to Renegotiate Terms of $18bn Copper Mine With Rio Tinto
March 10, 2026
Mongolia is seeking to renegotiate the commercial terms of the $18bn Oyu Tolgoi copper mine operated by Rio Tinto. The officials argue that the 17-year-old agreement is unfair to the country. Mongolia’s Prime Minister and other officials are in talks with Rio executives to revise key financial terms. These revisions include cutting the interest rate on government loans used to fund its 34% stake to below 6% and eliminating Rio’s $150–200mn annual management fee. Mongolia says it has yet to receive dividends from the project due to high financing costs, delays, and cost overruns that have pushed expected payouts to around 2037. The push for renegotiation reflects rising resource nationalism and strong copper prices, while the government has warned it could raise export taxes on copper if talks fail. The negotiations also come amid licensing issues related to underground expansion and a $450mn tax dispute, increasing pressure on both sides to reach a revised agreement before upcoming elections.
Dollar bonds of both Mongolia and Rio Tinto traded stable. Mongolia’s 8.65% 2028s were at 106.8, yielding 4.8%. Rio Tinto’s 7.125% 2028s were at 107, yielding 3.95%
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