TRQ provides update on Oyu Tolgoi LLC International Tax Arbitration…

Turquoise Hill Resources today announced that the Government of Mongolia filed its statement of defence together with a counterclaim (Government of Mongolia Defence and Counterclaim) in relation to a previously-disclosed international tax arbitration proceeding brought by Oyu Tolgoi LLC against the Government of Mongolia in February 2020. Turquoise Hill is not a party to that arbitration, but the Company understands that the Government of Mongolia Defence and Counterclaim includes a request that the arbitral tribunal add both the Company and a member of the Rio Tinto Group as parties to the tax arbitration. The Company understands that the principal thrust of the Government of Mongolia Defence and Counterclaim is to seek the rejection of Oyu tolgoi’s tax claims in their entirety. As part of the counterclaim, the Government of Mongolia makes assertions surrounding previously-reported allegations of historical improper payments made to Government of Mongolia officials and seeks unquantified damages. Also, in the event Oyu tolgoi’s tax claims are not dismissed in their entirety, Government of Mongolia is seeking in the counterclaim an alternative declaration that the 2009 Investment Agreement is void. Turquoise Hill denies the allegations relating to it in the Government of Mongolia Defence and Counterclaim and intends to oppose Government of Mongolia’s request that it be added to the tax arbitration as and when that application is formally served on Turquoise Hill. If nevertheless the Company is added to the proceedings, Turquoise Hill will vigorously defend itself against the counterclaim.

Source: www.turquoisehill.com