Oyu Tolgoi LLC Statement on the Tax Act
On 11 February 2026, the Mongolian Tax Authority (MTA) issued a new Tax Act to Oyu Tolgoi following a two-year tax audit for the years 2021 and 2022. The MTA imposed a total assessment of approximately USD 440 million (MNT1.6 trillion), consisting of USD 220 million in tax act and USD 220 million in penalties and interests.
Although Oyu Tolgoi does not concur with this tax assessment, in accordance with the requirements of the Tax Law, Oyu Tolgoi transferred the full MNT1.6 trillion to the designated tax authority account on 10 March 2026.
Previously, the MTA issued three separate tax assessments to Oyu Tolgoi. In accordance with the dispute‑resolution provisions of the Investment Agreement, Oyu Tolgoi and the Government of Mongolia jointly referred these disputes to the London Court of International Arbitration in 2020. The arbitration process remains ongoing.
As the tax assessment is inconsistent with the Oyu Tolgoi Investment Agreement (OTIA) signed with the Government of Mongolia and with applicable Mongolian tax legislation, Oyu Tolgoi submitted an official complaint to the Tax Dispute Settlement Council on 11 March 2026.
We will take relevant actions under the OTIA and Mongolian laws, including engaging in discussions with the Government of Mongolia to resolve the dispute.
Oyu Tolgoi pays 18 different types of taxes, fees, and charges. Disputes have arisen regarding four of these tax types, representing over 10% of the company’s total tax payments.
Oyu Tolgoi has consistently been one of the largest taxpayers in Mongolia and has fully and responsibly paid all taxes, fees, and charges in accordance with the OTIA and applicable Mongolian tax laws. Since 2010, the company has paid a total of MNT14.4 trillion (USD 5.5 billion) in taxes, royalties, and other payments.