Turquoise Hill Resources (TSE:TRQ)(NYSE:TRQ)(NASDAQ:TRQ) Monday rejected the Mongolian government's request to renegotiate an investment agreement for the Oyu Tolgoi mine, one of the world's biggest new copper developments.
The company, formerly known as Ivanhoe Mines, said Mongolia's mine minister had written to request a renegotiation of a deal signed in October 2009.
However the company, which is majority-owned by mining giant Rio Tinto (NYSE:RIO), said it rejected the government's request saying the deal is a binding agreement that was re-affirmed as recently as October 2011.
"We have invested nearly US$6 billion, created thousands of jobs for Mongolians and are on the verge of production based on the investment agreement, which provides a stable legal framework and is a legally-binding document," Turquoise Hill CEO Kay Priestly said.
"The investment agreement has been fundamental in building Mongolia's reputation as an increasingly reliable and secure destination for foreign investment."
Ivanhoe, which was the driving force behind developing Oyu Tolgoi, changed its name last summer.