US judge to approve Rio Tinto’s Mongolia mine settlement

Core Viewpoint - A US district judge is expected to approve Rio Tinto's $138.75 million settlement related to the Oyu Tolgoi mine expansion in Mongolia, following allegations of misleading investors about the project's issues [1][2]. Group 1: Settlement Details - The lawsuit was initiated by shareholders of Turquoise Hill Resources, claiming damages for the period from July 2018 to July 2019, when Rio Tinto predominantly owned the company [2]. - The settlement amount represents 34–43% of the damages that Pentwater Capital Management believed could be substantiated at trial, which Pentwater characterized as reasonable given the risks of ongoing litigation [3]. - Rio Tinto has not admitted any wrongdoing in the settlement agreement [2]. Group 2: Project Issues - Pentwater accused Rio Tinto and Turquoise Hill of deceiving investors by stating that the Oyu Tolgoi mine was progressing "on plan" and "on budget," despite facing delays of up to two-and-a-half years and cost overruns of up to $1.9 billion [4]. - In 2019, Rio Tinto disclosed a possible cost overrun of $1.9 billion, revising total capital expenditures to between $6.5 billion and $7.2 billion [4]. Group 3: Ownership and Acquisition - Turquoise Hill held a 66% ownership stake in the Oyu Tolgoi mine, while the Mongolian Government owned the remaining 34% [3]. - In 2022, Rio Tinto acquired the remaining 49% of Turquoise Hill for $3.3 billion, fully integrating the mine into its copper portfolio [5].