Submitted by MONTSAME on

Banks supporting Rio Tinto's USD 6 billion expansion of the Oyu Tolgoi mine in Mongolia look set to forgive ongoing delays to the project.
Only two major banks, Australia's Export Finance and Insurance Corporation and the European Bank for Reconstruction and Development have agreed to extend their funding commitments towards the end of the year. Rio Tinto is now trying to resolve issues with the Mongolian government before September 30.
Funding commitments for the second stage of Oyu Tolgoi from about 15 international banks expired on the 31st of March, and Rio said on Tuesday that it had asked its funders to extend their commitment to September 30.
The European Bank for Reconstruction and Development (EBRD) confirmed on Tuesday that it had granted an extension until September 30, while the Australia’s Export Finance and Insurance Corporation (EFIC) is understood to have gone further and given Rio until December 31 on the proviso that the nature of the expansion does not significantly change between now and then.

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