Rio Tinto Limited (ASX:RIO) said the development of the copper and gold project it operates in Mongolia may cost up to US$10 billion, including US$6billion for the first stage.
The company’s copper chief Andrew Harding said studies on the second phase haven’t been completed though, and the cost estimate could change.
Meanwhile, a push by the Mongolian government may see Ivanhoe, the major shareholder of the project, seek a renegotiation. But Rio said this was just political positioning, and won’t result in changes.
In the first half of the 2011 financial year Rio Tinto reported a net profit of $7.5 billion.
