Brazilian miner Rio Tinto plans to acquire an additional $500mn in debt funding under arrangements made with international financial institutions.
Rio Tinto and Turquoise Hill Resources (TRQ) are currently working together on the Oyu Tolgoi copper project in South Gobi, Mangolia, planning a $1.5bn expansion. Rio Tinto made clear in a memorandum of understanding, signed September 10, that TRQ will not raise any more debt and will instead put its equity on sale in order to raise the necessary funds to scale up operations at the open-pit mine.
Rio Tinto currently owns 50.8pc of TRQ, which controls 66pc of Oyu Tolgoi. In the second quarter of this year, the mine produced 36,500mt of copper. The Brazilian company also clarified that it does not intend to purchase any more stakes in TRQ, and that it may sell off its share if market conditions deem it necessary.