- Rio Tinto has entered into a binding Heads of Agreement with Turquoise Hill Resources for an updated funding plan of about $2.3 billion to complete the Oyu Tolgoi Underground Project in Mongolia.

The funding plan builds on and replaces the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Rio Tinto and Turquoise Hill Resources will pursue re-profiling of principal debt repayments up to $1.4 billion with lenders under the existing project finance arrangements to better align with the revised mine plan, project timing and cash flows.

Also, they will seek to raise up to $500 million in senior supplemental debt under the existing project financing arrangements from selected international financial institutions.

As part of the funding plan, have committed to address any potential shortfalls from the re-profiling and additional SSD of up to $750 million by providing a senior co-lending facility on the same terms as OT's project financing.

Story provided by