Rio Tinto mismanagement caused cost overrun at Mongolian mine – WSJ By Reuters – Investing.com

Rio Tinto mismanagement caused cost overrun at Mongolian mine – WSJ By Reuters – Investing.com

(Reuters) - An expert group reviewing the cause of a $1.4 billion cost overrun at a Mongolian mine run by Rio Tinto (NYSE:) said it was caused by the miner's mismanagement, the Wall Street Journal reported on Monday, citing a report.

Costs to expand the Oyu Tolgoi mine, Rio's biggest growth project, have ballooned up to $6.75 billion from Rio's original budget of $5.3 billion in 2016, and this has led to a friction over funding with Turquoise Hill.

Turquoise Hill, in which Rio has a 50.8% stake, owns 66% of Oyu Tolgoi, one of the world's largest-known copper and gold deposits. The rest is held by the Mongolian government.