VANCOUVER, BC--(Marketwired - June 23, 2014) - Turquoise Hill Resources (NYSE: TRQ) (NASDAQ: TRQ) (TSX: TRQ) today announced that Oyu Tolgoi LLC has received an audit report from the Mongolian Tax Authority claiming unpaid taxes, penalties and disallowed entitlements associated with the initial development of the Oyu Tolgoi mine.
Turquoise Hill is of the firm view that Oyu Tolgoi LLC has paid all taxes and charges as required under the Investment Agreement and Mongolian law.
Kay Priestly, Turquoise Hill Chief Executive Officer, said, "We strongly disagree with the claims in the audit report and are currently reviewing all options to resolve this matter. It is important that we protect our right of tax stabilization provided by the Investment Agreement."
Turquoise Hill and Rio Tinto are reviewing the detailed tax claim. Any element of the claim that amounts to a breach of the Investment Agreement will trigger the dispute resolution process outlined in the Investment Agreement including possible international arbitration.
The impact of these claims on resolution of the outstanding shareholder issues is unclear at this time. However, completion of the underground feasibility study is likely to be delayed if a resolution to the tax matters is not reached before June 30, 2014.
About Turquoise Hill Resources
Turquoise Hill Resources (NYSE: TRQ) (NASDAQ: TRQ) (TSX: TRQ) is an international mining company focused on copper, gold and coal mines in the Asia Pacific region. The Company's primary operation is its 66% interest in the Oyu Tolgoi copper-gold-silver mine in southern Mongolia. Turquoise Hill also holds a 56% interest in Mongolian coal miner SouthGobi Resources (TSX: SGQ) (HK: 1878).