Mongolia and Rio Tinto reached a critical milestone in negotiations over the Oyu Tolgoi project’s financing. The two parties agreed to lower the shareholders’ loan interest rate, a move expected to ease the project’s financial burden.
The discussions were held over two days and concluded successfully on October 31, 2025. Mongolia’s Government working group, established by the Prime Minister, led the talks. Javkhlan Bold, the Minister of Finance, signed a protocol confirming the agreement. On the Rio Tinto side, Tim Wilcox, Managing Director of Business Development, also signed the document.
The Oyu Tolgoi project, a major copper and gold mining initiative, plays a crucial role in Mongolia’s economic growth. The project team expects the loan interest rate reduction to improve cash flow and strengthen long-term investment prospects.
Following the signing, negotiators agreed to temporarily adjourn the initial round of discussions. Rio Tinto will review additional information and proposals submitted by Mongolia. The next negotiation session is scheduled to resume in November.
Observers note that the agreement highlights Mongolia’s strategic approach to balancing foreign investment with national financial interests. Experts say that lowering the loan interest rate could accelerate development at Oyu Tolgoi while enhancing Mongolia’s negotiating position in future projects.
The talks also underscore Mongolia’s commitment to active engagement with multinational corporations. By establishing a dedicated government working group, Mongolia ensures that national interests remain a priority in complex mining agreements.
In addition to financial terms, analysts expect subsequent negotiations to address operational and governance issues at Oyu Tolgoi. The project remains a cornerstone for both Mongolia’s economy and Rio Tinto’s global mining portfolio.
The success of this negotiation may also influence other mining deals in Mongolia. International investors are closely monitoring how the government balances corporate demands with sustainable economic growth.
Ultimately, the Oyu Tolgoi agreement demonstrates the benefits of structured, transparent negotiations. Officials emphasize that the project will continue to advance with careful attention to financial efficiency and long-term development goals.
