Odey AM urges Rio Tinto to act 'immediately' following Turquoise Hill governance failure

CEO exit gives Rio an 'opportunity to act'

Odey Asset Management has demanded that mining giant Rio Tinto, which it holds shares in and is chief financial officer for, addresses governance issues surrounding its majority subsidiary Turquoise Hill, and its 66% stake in Mongolian polymetallic mine Oyu Tolgoi.

In an open letter released today (25 November), Odey AM - which has a long position in Rio Tinto and a short position in Turquoise Hill - accused Rio of holding the "people of Mongolia… accountable for Turquoise Hill's failings" after it called the Mongolian government's $7bn equity stake in the copper-gold mine "worthless". This comes following the firm's accusation that Rio Tinto unnecessarily failed to trigger clauses set out in the financing support agreement, which has caused a "false market to form" in the trading of Turquoise Hill's shares, given the market "inaccurately represent...