Mongolia demands Rio Tinto change “unfair” terms of deal on giant Oyu Tolgoi copper mine www.intellinews.com

Mongolia has informed Anglo-Australian mining giant Rio Tinto (ASX: RIO) that it wants a renegotiation of “unfair” commercial terms of the contract that applies to the development of the huge $18bn Oyu Tolgoi copper and gold mine in the Gobi desert.

Mongolia’s official news agency Montsame reported that Prime Minister Zandanshatar Gombojav on March 9 met with Katie Jackson, head of copper at Rio, and presented demands.

In early December last year, bne IntelliNews reported on how Mongolia was calling public hearings ahead of a likely push to obtain better Oyu Tolgoi terms from Rio.

At the meeting, Jackson presented Rio’s proposals on issues including management fees and interest rates on shareholder loans, according to Montsame.

The media outlet’s report added that Zandanshatar said that while it was commendable that Rio had shown respect for negotiations with the government of Mongolia and arrived with certain progressive proposals, the suggestions were insufficient for Mongolia and could not be accepted.

He was reported as reiterating that he remained steadfast in his position, first expressed as far back as 2009, that the principle of “mutual benefit” was not being adequately upheld in the Oyu Tolgoi project.

“There is a principle that the Mongolian people are the rightful owners of their natural wealth. Under the current arrangement, Mongolia would receive dividends from the Oyu Tolgoi project only after 20 to 30 years, which does not align with the principle of mutual benefit. The idea that Mongolians should own their natural wealth is a right guaranteed to the people under the Constitution,” Zandanshatar was quoted as saying at the meeting with Jackson and other Rio representatives.

The Financial Times reported video footage as showing that the prime minister at the meeting warned Rio executives that “this whole situation feels like the Mongolian people and the parliament are being deceived”.

He was also reported by Montsame as outlining demands, including:

Raising Mongolia’s share of benefits from the Oyu Tolgoi project to more than 60%.
Significantly reducing the interest rate on shareholder loans.
Lowering management fees and ensuring that Oyu Tolgoi LLC becomes operationally independent in terms of management from 2030.
Distributing dividends to Mongolia by 2026.
Resolving issues related to licences of Canadian project partner Entrée Resources (TSE: ETG) in accordance with Article 6.2 of the Constitution. This stipulates that the majority of benefits from natural resources must accrue to the people.
Rising prices for copper and growing support for resource nationalism in Mongolia have contributed to strong political momentum to change the terms of the 17-year-old mine development deal. Politicians are conscious that the issue will play a role in elections due next year.

Under the terms of the original Oyu Tolgoi agreement, the government of Mongolia owns 34% of the mine, held through state-owned mining company Erdenes Mongol Group.

To fund its share of the capital expenditure required to develop the mine, the government took out a multibillion-dollar loan from Rio. It was provided at a floating interest rate that is presently more than 11%.

There have been repeated project cost overruns and delays. These have pushed back the time when the government will start to receive dividends from mine profits from 2017 to around 2037.

The Mongolian proposal would cut the loan interest rate to less than 6%, on par with the interest rate for Mongolia’s other sovereign lending, according to the FT.

Rio’s plan is to make Oyu Tolgoi the world’s fourth largest copper mine by 2030, with production to run at around 500,000 tonnes of the metal a year.

“We are engaged in active negotiations with the Mongolian government,” Rio said in a statement reported by the FT, adding: “These discussions reflect our continued commitment to working together to achieve Oyu Tolgoi’s full potential for the benefit of all partners.”

At present, the mine produces copper from its open pit. Its underground operations are being built out.

On March 10, JPMorgan downgraded Rio from 'overweight' to 'neutral'. 

Mongolia Rio Tinto Copper Partnership Renegotiation Developments www.discoveryalert.com.au

91 citizens returned to Mongolia on special mission flight www.gogo.mn

The Government of Mongolia organised a special repatriation flight on March 10, 2026 that brought 91 citizens home from Dubai on a Ulaanbaatar–Dubai–Ulaanbaatar mission operated by MIAT Mongolian Airlines. The airline deployed a 23-person flight team, and the operation was coordinated with the United Arab Emirates Air Force and civil aviation authorities.
The evacuation was arranged after reports of escalating conflict in the Middle East disrupted commercial routes and led several countries to close or restrict their airspace; in recent days only humanitarian and emergency flights, including evacuations, have been allowed to operate in parts of the region affected by military action. Mongolian officials said the special flight was part of broader efforts by states to repatriate nationals from the area.

Mongolian Foreign Minister Attends Nuclear Energy Summit www.montsame.mn

Minister of Foreign Affairs Battsetseg Batmunkh participated in the second World Nuclear Energy Summit held on March 10 in Boulogne-Billancourt, France.

The summit, co-hosted by France and the International Atomic Energy Agency (IAEA), discussed the role of nuclear energy in mitigating climate change and reducing carbon emissions, financing for energy projects, advanced technologies, safety standards, and the harmonization of regulatory and inspection systems to develop unified international standards. Participants also addressed issues including small modular reactors, fuel supply for nuclear power plants, and human resources in the nuclear sector.

In his opening remarks, Emmanuel Macron, President of France, emphasized that nuclear energy plays an important role in strengthening countries’ strategic independence and industrial competitiveness, as well as in reducing carbon emissions. He also highlighted the importance of a reliable fuel supply for the sustainability of the nuclear sector, noting that a number of countries are engaged in uranium mining. In this regard, he mentioned Mongolia and Kazakhstan as countries planning to expand uranium production, stressing that diversifying supply sources and deepening international cooperation are crucial for the stability of the nuclear energy sector.

More than 60 countries were represented at the summit by heads of state and government, cabinet ministers, leaders of international organizations, and representatives of industry and financial institutions, who discussed the future of nuclear energy and presented their respective policies and activities.

During the opening session, Minister Battsetseg presented Mongolia’s energy outlook and its position on nuclear energy in the context of international cooperation. She noted that energy security is a key priority for Mongolia and emphasized the importance of aligning the development of safe, sustainable, and affordable nuclear energy with the climate goals of the Paris Agreement.

On the sidelines of the summit, Minister Battsetseg held a bilateral meeting with Jean-Noël Barrot, France’s Minister for Europe and Foreign Affairs, during which the two sides exchanged views on Mongolia–France relations, cooperation projects, and the international situation.

According to the Ministry of Foreign Affairs, Mongolia joined the adoption of the declaration titled “Affordable and Safe Nuclear Energy for All” and a joint statement on financing in the nuclear energy sector issued at the summit.

Public Service Reference Documents Now Available in Six Languages www.montsame.mn

Twelve types of official reference documents and certificates that were previously issued only in English through Mongolia’s integrated public service system are now available in Russian, English, Chinese, Korean, and French.

According to the Ministry of Digital Development, Innovation and Communications of Mongolia, the documents include references related to birth registration, national ID cards, marital status (single or married), whether a citizen is subject to criminal liability, social insurance contribution records, confirmation of whether an individual has outstanding payments to others under a court decision, pension determination documents for loss of a breadwinner, disability and old-age pensions, driver’s information records, and vaccination certificates.

Previously, these reference documents and certificates had to be officially translated and notarized for purposes such as studying abroad, employment, or visa applications. They can now be obtained directly through the E-Mongolia System.

Citizens can receive the service by presenting their national ID card and mobile phone. If the service is requested through a proxy, the power of attorney must still be valid and must specify the service being requested.

Major General Erdenebat Praised for Strengthening Mongolia’s Global Reputation www.montsame.mn

President and Commander-in-Chief of the Armed Forces, Khurelsukh Ukhnaa, received Major General Erdenebat Batsuuri, who served as the Force Commander of the United Nations Peacekeeping Force in Cyprus (UNFICYP).

President Khurelsukh expressed gratitude on behalf of the state and people of Mongolia to Major General Erdenebat, who was appointed as the Force Commander of the UN peacekeeping mission UNFICYP and led blue helmets from 18 countries for two years.

The President highlighted that more than 20.000 Mongolian soldiers have served in global hotspots, demonstrating courage, resilience, resourcefulness, and professional skills in support of international peace and security, and making a valuable contribution to strengthening Mongolia’s reputation in the international community.

He emphasized that, in more than 20 years of Mongolia’s participation in UN peacekeeping operations, this marks the first time a Mongolian general has served as a UN Force Commander, underscoring that Mongolian soldiers have become truly global soldiers.

The peacekeeping mission in Cyprus is one of the 12 UN peacekeeping operations currently conducted worldwide. Major General Erdenebat has previously participated in eight peacekeeping missions in countries such as Iraq, Liberia, South Sudan, and Sierra Leone. 

Rio Tinto Shares Hold Support: Renegotiating Copper Mine Deal www.thebull.com.au

Rio Tinto has confirmed active negotiations with Mongolia over financial terms at the massive Oyu Tolgoi copper mine, with the government demanding lower loan interest rates and removal of management fees in talks that could reshape economics at one of the miner’s most important growth assets.

The discussions centre on a US$12 billion shareholder loan currently charging Mongolia approximately 11.1% effective interest; a rate that has seen interest accumulate to nearly equal the principal and pushed out dividend expectations for the government’s 34% stake until potentially 2040. Mongolia’s prime minister has publicly called the existing deal “unfair” and threatened higher export taxes if Rio does not agree to cut the interest rate below 6% and reduce its annual management fee. The miner, which owns the remaining 66% and operates the project, said in an emailed statement that “we are engaged in active negotiations with the Mongolian government” and that “these discussions reflect our continued commitment to working together to achieve Oyu Tolgoi’s full potential for the benefit of all partners.”

Rio Tinto shares on the ASX have found technical support around the A$150 level through recent volatility, with the stock last trading near that zone as markets digest the renegotiation overhang alongside strong operational performance. The NYSE-listed ADR has held in the low-US$90s range, down modestly from highs earlier in the year but showing resilience given the scale of the Mongolia headline risk. Trading volumes have picked up during pullbacks, suggesting institutional buyers view the current level as attractive relative to Rio’s copper-growth story and 60%-plus dividend payout ratio.

The Oyu Tolgoi talks follow a structured timeline that began with a negotiation protocol signed on 31 October 2025, setting an initial decision target of 31 January 2026 with an option to extend. By early November, both sides had reached an agreement in principle to lower the shareholder loan interest rate, and a meeting between Mongolia’s prime minister and Rio Copper CEO Katie Jackson in mid-November confirmed mutual commitment to resetting both interest and management fees to international benchmarks. On 13 February 2026, the parties agreed to a staged roadmap targeting a final agreement in the first half of 2026, with Rio submitting concrete proposals to cut interest expense and management costs that officials say would directly increase Mongolia’s share of project returns.

The renegotiation comes as Rio delivered solid full-year 2025 results, with copper production reaching 883,000 tonnes; up 11% year-on-year and above the top end of guidance, driven largely by the Oyu Tolgoi underground ramp-up. Total copper-equivalent production rose approximately 8%, while revenue increased 7% to US$57.6 billion and underlying EBITDA climbed 9% to US$25.4 billion. Net earnings fell roughly 14% to US$10.0 billion from US$11.6 billion the prior year, reflecting softer iron ore prices and higher depreciation from growth projects including Oyu Tolgoi. The company maintained its ordinary dividend at US$6.5 billion, sustaining a decade-long track record of paying out at the top end of its 40-60% range.

Over 5,000 Households at Risk from Snowmelt Floods www.montsame.mn

The National Emergency Management Agency (NEMA) has reported that 5,005 households across Mongolia are at risk of being affected by spring snowmelt floods. Specifically, 3,789 households in 10 aimags and 1,216 households in seven districts of the capital city may face flooding.

The NEMA warned that due to a sharp rise in temperatures and monthly average temperatures expected to be above the long-term average in Bayan-Ulgii, parts of Khovd, Uvs aimags, and the western part of Gobi-Altai aimag, the risk of snowmelt flood levels is likely to increase.

According to the general risk assessment of vulnerability to snowmelt floods, six out of 330 soums in 21 aimags have been assessed as being at very high risk, 20 soums at high risk, 92 soums at medium risk, and 212 at low or very low risk. In the capital city, Songinokhairkhan District has been classified as very high risk, while four districts are at medium risk and four at low or very low risk.

The assessment was conducted in accordance with the “Unified Guidelines for Conducting General Disaster Risk Assessments” approved by the Deputy Prime Minister of Mongolia.

The assessment was carried out jointly by NEMA, the National Institute for Disaster Studies, the Ministry of Construction, Urban Development and Housing, the National Agency for Meteorology and Environmental Monitoring, the Information and Research Institute of Meteorology, Hydrology and Environment, the Water Agency, the Geodesy, Water, and Construction Facilities Authority, and the Institute of Geography and Geoecology of the Mongolian Academy of Sciences.

Prime Minister Raises Demands on Oyu Tolgoi Project in Meeting with Rio Tinto www.montsame.mn

 Prime Minister Zandanshatar Gombojav met on March 9, 2026, with officials led by Katie Jackson, the Chief Executive of Copper at Rio Tinto, and presented demands regarding the Oyu Tolgoi project.

In January 2026, Prime Minister Zandanshatar sent a letter to the management of Oyu Tolgoi LLC and Rio Tinto Group, outlining a number of conditions aimed at ensuring Mongolia’s interests in the Oyu Tolgoi project. In a reply dated February 5 this year, Simon Trott, Chief Executive of Rio Tinto, reaffirmed the company’s position to continue open and constructive negotiations based on the shared interest of ensuring the project’s long-term, stable, and successful operation. Following this exchange, officials led by Katie Jackson have arrived in Mongolia and presented their proposals on issues including management fees and the high interest rates on shareholder loans during the meeting with the Prime Minister.

Prime Minister Zandanshatar said that while it was commendable that Rio Tinto had shown respect for negotiations with the Government of Mongolia and arrived with certain progressive proposals, the suggestions were insufficient and therefore could not be accepted.

He reiterated that he remains firm in the position first expressed in 2009 that the principle of “mutual benefit” has not been adequately upheld in the Oyu Tolgoi project. Referring to Article 6.2 of the Constitution and Resolution No. 120 adopted by the State Great Khural in December 2025 regarding Oyu Tolgoi, the Prime Minister outlined the demands aimed at implementing these provisions.

The demands include:

Raising Mongolia’s share of benefits from the Oyu Tolgoi project to more than 60 percent.
Significantly reducing the interest rate on shareholder loans.
Lowering management fees and ensuring that Oyu Tolgoi LLC becomes operationally independent in terms of management from 2030.
Distributing dividends to Mongolia by 2026.
Resolving issues related to the licenses of Entrée Resources in accordance with Article 6.2 of the Constitution, which stipulates that the majority of benefits from natural resources must accrue to the people.

Prime Minister Zandanshatar noted that it is time to resolve long-standing issues related to the Oyu Tolgoi project that have been under discussion since 2009, including those that have remained unresolved following the 2019 constitutional amendments.

“There is a principle that the Mongolian people are the rightful owners of their natural wealth,” he said. “Under the current arrangement, Mongolia would receive dividends from the Oyu Tolgoi project only after 20 to 30 years, which does not align with the principle of mutual benefit. The idea that Mongolians should own their natural wealth is a right guaranteed to the people under the Constitution.”

Chief Executive Katie Jackson stated that Rio Tinto will continue negotiations aimed at increasing the benefits of the Oyu Tolgoi project and strengthening mutually beneficial cooperation, and expressed the company’s willingness to work with the Government of Mongolia.

Discussion on Forests, Water and Rangelands to Be Held Ahead of COP17 in Mongolia www.montsame.mn

A meeting and discussion to highlight the importance of forests, water, and rangelands will take place on the 27th of this month, in conjunction with the upcoming COP17—the United Nations Convention to Combat Desertification Conference of the Parties, hosted by Mongolia, and in observance of the International Day of Forests.

According to the Forest Agency of Mongolia, the discussion aims to strengthen Mongolia’s participation in COP17 through improved cross-sector coordination and to increase the involvement of civil society organizations.

Representatives from the Office of the President of Mongolia, the Forest Agency, the Water Agency of Mongolia, the COP17 Secretariat, the Billions of Trees National Movement, and the National Green Lab met to discuss stakeholders, topics, the meeting agenda, and the significance of the event.

During the meeting, participants discussed the format and program of the event, as well as ways to increase stakeholder and civil society organization participation. They explored opportunities to strengthen cooperation in the forest, water, and rangeland sectors. An organizing working group was also established, and the parties agreed to cooperate in exchanging information and preparing for the event. Last year, the International Day of Forests was marked on March 21 under the theme “Forests and Food.”

According to the Professional Council on Forest Resources, forests cover 13.6 million hectares of Mongolia’s total territory of 156.4 million hectares, accounting for 8.71 percent. Previously, it was estimated that forests covered around 8–9 percent of the country’s territory, or approximately 14–15 million hectares.