As explained before, Rio Tinto has some very simple leverage against the unreasonable requests of the Mongolian government to get a larger share of the profit.
They can just do nothing. That in turn will lead to zero profits, and zero revenue for the Mongolian government from the mine, much different from what they expect in their budget plans.
In the short term, this loses some money for Rio Tinto. But in the long term, they have a strong interest to show all developing country governments world wide that they are not going to be pushed around, and that attempts at getting greedy over what was agreed on will backfire.
Actually, it is the same for Mongolia. In the short term, it may look like a good idea to try to get some extra coin from this big investor. But in the mid term and long term, it will obviously delay development if investors need to reasonably conclude that the Mongolian government is unworthy of trust.
Therefore, it was very interesting to read at Bloomberg that Rio Tinto is considering doing exactly that. They are thinking about a “temporary halt of construction work”. Thanks to this Tweet by BDSec for the link.
In a contest on which party can hold its breath for the longer time, Rio Tinto will always win.
And the way to resolve the issue is for Rio Tinto to give the Mongolian government some more money, as long as it is clear that this is just an advance on future expected earnings.