Mongolia Charging Interest for Getting Payments Early

Mar 01 2013 Published by under Mongolia

No, that doesn’t make any sense. Why do you ask?

But it seems to be actually the position of the Mongolian government that the Oyu Tolgoi investors should pay interest for tax due 2012, but paid already in 2010 and 2011, according to Bloomberg. Again, thanks to this tweet by Enkhbat Dangaasuren for the link.

That is most unfortunate, since the natural way to resolve the present problems with the mine is to get the investors to pay some more advances to be deducted from later tax payments. That is what I expected to happen.

If it does, Rio Tinto may want to ask for a receipt, and a clear agreement on how that payment is to be treated in the future.

 

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