Rio Tinto Group proposed initial terms on a $4 billion project financing for the Oyu Tolgoi copper-gold mine in Mongolia as it tussles with the government over profits, according to sources close to the plan.
The world’s second-largest mining company sent a request for proposals to lenders after holding bank meetings, said the people, who asked not to be named because the transaction is private. They have been asked to respond by mid-March, the people said.
Rio Tinto is seeking about $2 billion of 12-year loans from banks and a further $2 billion from export credit agencies and international development funds for the project, the people said. The company is said to be considering a temporary halt to work as the government demands a greater share of profit from the mine.
Rio Tinto has not released any official information on this deal.