Turquoise Hill Resources has announced that the new feasibility study for the underground mine at Oyu Tolgoi was finalized. The underground expansion of the Oyu Tolgoi project has been held up due to a tax dispute between the Government of Mongolia and Rio Tinto Group, and also caused a delay in the finalization of the feasibility study.

Turquoise Hill Resources says that the underground expansion of Oyu Tolgoi is underway, as the feasibility study was finalized and  shareholders of Oyu Tolgoi finally resolved the tax debate on September 10th.

Turquoise Hill Resources has sent the new feasibility study to the Board of Directors of Oyu Tolgoi. If the board approves the new feasibility study, it will be delivered to the Mongolian Minerals Resource Council for permit approval.

Turquoise Hill Resources believes that if the new feasibility study is approved, funding for the underground expansion of Oyu Tolgoi, required documents, and permists will be resolved.

The Tax Dispute Settlement Council of the General Department of National Taxation discussed the tax dispute between the Government of Mongolia and Rio Tinto. Mongolian shareholders announced that the Tax Dispute Settlement Council cut the tax claim to 30 million USD from around 130 million USD, and investors confirmed the announcement.

As the new feasibility study is finalized, project holders have to determine the overrun cost of the first phase of development at Oyu Tolgoi.

Turquoise Hill Resources also announced that they will fix current damage at Oyu Tolgoi. As the result of the damage, the mine is processing at only 60 percent capacity.