NEW YORK (TheStreet) -- Turquoise Hill Resources (TRQ) shares are up 3.52% to $4.51 in afternoon trading on Wednesday following the settlement of a dispute between the Mongolian government and its mining partner Rio Tinto (RIO) that will allow the companies to resume the expansion of the copper and gold mine at Oyu Tolgoi.
Rio Tinto agreed to pay $30 million in taxes on the mine development deal per the terms of the agreement, down from the $127 million the Mongolian government was originally seeking.
Rio Tinto, which holds about a 51% stake in Turquoise Hill, has been at odds with the Mongolian government over a planned $5.4 billion expansion at the mining site for the past two years. The squabbling has caused investments in Oyu Tolgoi, the largest foreign investment in the country, to fall to $400 million last year from $4.5 billion in 2012, according to Bloomberg.
Turquoise Hill holds a 66% stake in Oyu Tolgoi, but Rio Tinto controls the mining operations through its majority stake in Turquoise Hill.
TheStreet Ratings team rates TURQUOISE HILL RESOURCES LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TURQUOISE HILL RESOURCES LTD (TRQ) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."