Turquoise Hill Resources Ltd. (TSE:TRQ), the Canadian mineral exploration company focused on the Asia Pacific region, filed a notice of dispute with the government of Mongolia, after tax authorities in Central Asian country claimed unpaid taxes and penalties related to the development of the Oyu Tolgoi copper and gold mine.
Turquoise Hill, which owns 66 percent of Oyu Tolgoi, said it strongly disagrees with the claims that are contained in the audit report, and believes the mine has paid all legally required taxes and charges.
The company said today that the filing is the first step in the dispute-resolution process and includes a 60-day negotiation period.
Rio Tinto-controlled Turquoise Hill said the distribution of the underground feasibility study will be delayed as outstanding shareholder issues, including tax claims, must be resolved before further investment in the underground can proceed.
Shares skidded 0.1 percent to C$3.65 at 10:15 a.m. in Toronto. The stock has lost 37 percent over the past year.