ULAN BATOR, Dec. 13 (Xinhua) -- Mongolian Prime Minister Luvsannamsrai Oyun-Erdene announced Monday that Anglo-Australian mining giant Rio Tinto has agreed to write off Mongolia's 2.3-billion-U.S.-dollar debt for its share in the Oyu Tolgoi copper-gold project.

"The government has received a letter from Rio Tinto agreeing to write off the debt, conduct an independent audit into the financing of the project's underground expansion and improve governance," Oyun-Erdene told a press conference.

With the debt canceled, the timeline to start receiving dividends is approaching for Mongolia, the prime minister said.

The Oyu Tolgoi copper-gold mine deal between the Mongolian government and Rio Tinto was signed in 2009, with its financing arrangement revised in 2015.

However, the underground expansion of the Oyu Tolgoi project has been hit by frequent disputes and delays over geotechnical difficulties, costs, the COVID-19 pandemic and others.

The mine is Mongolia's biggest ever investment project, and is located in the country's South Gobi Desert.

It is expected to produce 430,000 tons of copper and 425,000 ounces (about 12,050 kg) of gold annually for 20 years.

The Mongolian government has a 34-percent stake in Oyu Tolgoi while the Rio Tinto-controlled Turquoise Hill Resources owns the remaining 66 percent. Enditem

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