In the latest chapter of a dispute between UK-based miner Rio Tinto and the government of Mongolia, the firm has announced that it will cut 1,700 jobs at its Oyu Tolgi plant in Mongolia, as the plant’s $5 billion expansion is put on hold.

The Mongolian government, which owns a 35% stake in the plant, has been recalled for an emergency meeting regarding the financing of the over-budget expansion, as the government is eager to start seeing revenues from the deal.

Spreads on Rio Tinto moved out eight basis point from 108bp to 116bp, according to data from Markit.