Resource Nationalism In Mongolia Returns To Haunt Rio Tinto -- Trefis: "The specter of resource nationalism in Mongolia has come to haunt Rio Tinto (NYSE:RIO) once again. In complete contrast to sentiment expressed by its foreign minister just about two weeks back, the government has asked Rio Tinto to renegotiate the 2009 deal over the $6.2 billion Oyu Tolgoi mine. Rio plans to start mining operations here in the first half of 2013.
The latest renegotiation request comes in light of the 2013 budget draft which proposes to increase taxes and royalties on the mine by $300 million. This goes against the 2009 agreement which froze tax rates over the life of the mine. Rio has chosen to reject the renewed request, pointing out that it has invested nearly $6 billion and created thousands of jobs for Mongolians. It also emphasized that the investment agreement provides a stable legal framework and is a legally binding document. ((Tax Proposal in Mongolia Threatens Rio Tinto Project, New York Times))"
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