A working group under Prime Ministerial Order No. 68 has been negotiating with Rio Tinto. The group aims to cut the management fee rate of the Oyu Tolgoi project. Prime Minister Uchral Nyam-Osor confirmed the government achieved its first successful outcome in these talks. Consequently, this fee reduction will lower the project’s management fee by half. The agreement also removes overlapping charges from the mining contract.
Minister of Industry and Mineral Resources Damdinnyam Gongor leads the working group. The Government Media and Public Relations Department announced the preliminary deal. Moreover, this fee reduction should reduce total project costs by 2.2 billion dollars. It will also increase Mongolia’s benefits from Oyu Tolgoi by 1.5 billion dollars. These figures mark a major shift for the massive copper-gold mine.
The fee reduction follows years of disputes between Mongolia and Rio Tinto. Previous disagreements centered on cost overruns and profit sharing agreements. However, both sides now show willingness to compromise on management expenses. The deal still requires final approval and formal documentation. Nevertheless, officials expressed strong optimism about the remaining steps.
Rio Tinto has not yet issued an official statement on this fee reduction. The working group continues technical discussions to finalize all terms. Therefore, Mongolia stands to gain significantly from lower management charges. The additional 1.5 billion dollars will support national development priorities. This fee reduction demonstrates that persistent negotiation can yield tangible results for resource-rich nations.
