Turquoise Hill Resources Ltd. (“Turquoise Hill” or the “Company”) today announced that the Government of Mongolia (“GOM”) filed its statement of defence together with a counterclaim (“GOM Defence and Counterclaim”) in relation to a previously-disclosed international tax arbitration proceeding brought by Oyu Tolgoi LLC (“OT”) against the GOM in February 2020. Turquoise Hill is not a party to that arbitration, but the Company understands that the GOM 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 GoM Defence and Counterclaim is to seek the rejection of OT’s tax claims in their entirety. As part of the counterclaim, the GoM makes assertions surrounding previously-reported allegations of historical improper payments made to GOM officials and seeks unquantified damages.
Also, in the event OT’s tax claims are not dismissed in their entirety, GoM is seeking in the counterclaim an alternative declaration that the 2009 Investment Agreement (“IA”) is void.
Turquoise Hill denies the allegations relating to it in the GOM Defence and Counterclaim and intends to oppose GOM’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.
About Turquoise Hill Resources
Turquoise Hill is an international mining company focused on the operation and continueddevelopment of the Oyu Tolgoi copper-gold mine in Mongolia, which is the Company’s principal and
only material mineral resource property. Turquoise Hill’s ownership of the Oyu Tolgoi mine is held
through a 66% interest in Oyu Tolgoi LLC); Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34% interest.
Turquoise Hill Resources will announce its first quarter financial results on Wednesday, May 12,
2021 after markets close in North America.