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RIO - Rio Tinto News Story

6477p 69.0  1.1%

Last Trade - 4:36pm

Sector
Basic Materials
Size
Large Cap
Market Cap £103.74bn
Enterprise Value £107.66bn
Revenue £32.09bn
Position in Universe 12th / 1821

BREAKINGVIEWS-Rio finds gold plating for Mongolia copper mess

Mon 12th April, 2021 3:36am
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By Antony Currie MELBOURNE, April 12 (Reuters Breakingviews) - The $131 bln miner and its partner Turquoise Hill have made peace over financing the troubled Oyu Tolgoi project. It’s a deft solution that tries to get most stakeholders to pitch in. Other prickly issues remain, like getting back into Ulaanbaatar’s good books. But it’s progress. Full view will be published shortly. On Twitter https://twitter.com/AntonyMCurrie CONTEXT NEWS - Rio Tinto and Turquoise Hill Resources on April 9 struck a binding agreement to cover a $2.3 billion funding shortfall for developing the Oyu Tolgoi copper and gold mine in Mongolia. It replaces a non-binding memorandum of understanding the two entered into in September. Rio owns 51% of Canada-based Turquoise. - Under the terms, the two will first try to restructure Turquoise’s debt to free up as much as $1.4 billion. The miners will also endeavour to raise $500 million in new debt. They have until March 31 2022 to achieve both. - If they fail to raise the entire $1.9 billion, Rio will provide a loan of up to $750 million and Turquoise will sell up to $500 million of new equity, either by a rights offering or a private placement. Turquoise can also raise more equity if a funding shortfall remains. - For previous columns by the author, Reuters customers can click on CURRIE/ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Rio-Turquoise announcement https://www.riotinto.com/news/releases/2021/Rio-Tinto-reaches-agreement-with-Turquoise-Hill-Resources-on-financing-plan-for-Oyu-Tolgoi Rio-Turquoise heads of agreement https://www.sec.gov/Archives/edgar/data/1158041/000119312521110972/d158117dex992.htm BREAKINGVIEWS-Rio can use sunny outlook to mend leaky roof urn:newsml:reuters.com:*:nL8N2KN2EO BREAKINGVIEWS-New Rio Tinto boss has Mongolian bullet to bite urn:newsml:reuters.com:*:nL4N2JT26E BREAKINGVIEWS-Rio’s new CEO reflect its lack of wiggle room urn:newsml:reuters.com:*:nL8N2IX22R ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe | Editing by Una Galani and Katrina Hamlin) ((antony.currie@thomsonreuters.com; Reuters Messaging: antony.currie.thomsonreuters.com@reuters.net))
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