By B. Bayar

Rio Tinto Group, which owns 66 percent of the Oyu Tolgoi project, has long faced criticism over the agreements it signed with the Mongolian government. Foreign and domestic experts have raised concerns about provisions in the 2009 Investment Agreement and Shareholders’ Agreement, while analysts have also criticized the company for failing to publicly disclose key financial information in Mongolia.
The issue has resurfaced after Oyu Tolgoi released its operational report for the second quarter of 2026 without disclosing its revenue.
Former Deputy Minister of Justice and Home Affairs and lawyer B. Solongoo criticized the omission, saying that while the report provides extensive information about corporate social responsibility projects and activities, it fails to disclose the company’s most important financial results.
“Most notably, it completely ‘hid’ how much revenue it earned from copper concentrate exports, how much it spent on mining operations and how much profit it generated,” she said.
According to copper concentrate export data and estimates by international analysts cited by Solongoo, Oyu Tolgoi’s sales revenue exceeded USD 2 billion, or MNT 7.6 trillion, in the second quarter of 2026. Its total revenue for the first half of the year is estimated at around USD 4 billion, or MNT 15.2 trillion.
She noted that this amount is equivalent to roughly half of Mongolia’s current foreign exchange reserves. However, she argued that Oyu Tolgoi’s revenues do not pass through Mongolian commercial banks but are transferred directly to overseas bank accounts, meaning they do not directly contribute to increasing the country’s foreign exchange reserves.
“Why does a company that presents itself as transparent fail to report its revenue? Mongolia owns 34 percent of this project. Is it appropriate for Rio Tinto to ‘hide’ even the revenue it earns from Mongolians?” Solongoo said.
Financial information submitted to Mongolia’s Ministry of Industry and Mineral Resources, the Mineral Resources and Petroleum Authority, and Erdenes Oyu Tolgoi LLC does contain revenue figures. However, these reports also show substantial expenses and financing costs.
According to Oyu Tolgoi’s 2024 financial and operational report, the company had total assets of USD 18.4 billion. Sales revenue stood at USD 2.18 billion, while the cost of goods sold was USD 1.11 billion and gross profit reached USD 946.9 million.
However, general and administrative expenses amounted to USD 603.4 million and finance costs reached USD 1.63 billion, resulting in a net loss of USD 1.26 billion for the year. The company generated USD 599.2 million in net operating cash flow and spent USD 1.3 billion on investing activities. It also paid USD 483 million in interest on senior debt and distributed no dividends.
The figures increased substantially in 2025. Oyu Tolgoi reported total assets of USD 20.4 billion and total liabilities of USD 20.5 billion. Sales revenue reached USD 4.99 billion, while gross profit stood at USD 3.07 billion and EBITDA at USD 3.47 billion.
Its liabilities included USD 12.5 billion in shareholder loans, USD 1.6 billion in project financing loans and another USD 1.6 billion in prepaid financing. During the year, the company repaid USD 476 million in principal and paid USD 562 million in interest. Once again, no dividends were distributed.
 

Source: Zuuniimedee № 151 (7893) August 14, 2026

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