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Rio Tinto criticized for influence over Turquoise Hill, Mongolian mine

Published 02/02/2018, 11:43 AM
© Reuters.  Rio Tinto criticized for influence over Turquoise Hill, Mongolian mine
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  • Rio Tinto (LON:RIO) (RIO -2.1%) wields too much influence over Turquoise Hill Resources (TRQ -2.3%), the company that owns a 66% stake in the huge Oyu Tolgoi copper and gold mine in Mongolia, according to U.S. investment group Sailingstone Capital, which is calling on TRQ's directors to protect the interests of minority shareholders.
  • “We believe basic corporate governance standards require an independent and informed management team and board of directors... today neither of these conditions is being met,” says Sailingstone, which owns an 11.3% stake in TRQ.
  • The group says TRQ's current management team consists of seconded Rio execs who operate without employment contracts from TRQ and wants the contracts changed to improve “alignment” with minority shareholders, as well as an independent report “so that we can be certain that existing estimates of capital intensity and schedule are reasonable."


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