By Cecilia Jamasmie
MINING.com
Mongolia’s Tax Authority has accused Rio Tinto’s (ASX, LON, NYSE: RIO) unit in the country of evading taxes and penalties payments related to the $6.6 billion Oyu Tolgoi copper and gold mine.
Operator Turquoise Hill Resources (TSX, NYSE:TRQ), however, says it has paid all taxes and charges required under its agreement with the government, complying with the country’s laws.
“We strongly disagree with the claims in the audit report and are currently reviewing all options to resolve this matter,” Kay Priestly, Turquoise Hill’s chief executive officer, said in the company’s statement.
The Vancouver-based company, which owns 66% of Oyu Tolgoi, said that if the dispute is not resolved by June 30 the feasibility study for the underground expansion could be delayed.