31st Oct 2014 06:41
LONDON (Alliance News) - Rio Tinto PLC is set to take a USD2.5 billion writedown on its Oyu Tolgoi mining project in Mongolia, The Times reported on Friday.
Construction of the USD5 billion project has fallen into trouble due to a tax dispute with the local government, the newspaper added.
Rio Tinto flagged in its half-year results in August that it could have to write down the value of the project should the delays persist, but Turquoise Hill, the Rio Tinto-controlled company that owns the majority of the project, has said the delays have contributed to a USD2.5 billion reduction in the value of the scheme.
http://www.thetimes.co.uk/tto/business/industries/naturalresources/article4253097.ece
By Sam Unsted; [email protected]; @SamUAtAlliance
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