RIO TINTO IMPLEMENTED PROJECT “BARRACUDA” TO UNDERMINE AND SILENCE MONGOLIA?
A Parliamentary open hearing on the Oyu Tolgoi project is scheduled to take place between 8-12 December 2025. The open hearing will focus on two specific topics: (1) shareholders’ loan provided by Rio Tinto to Oyu Tolgoi LLC and interest rate (according to sources, outstanding amount is US$12.5 billion and interest rate is 11%); and (2) issues related to the licenses held by Entrée company in the areas adjacent to the Oyu Tolgoi LLC’s licensed area. The Parliamentary hearing will be organized as a result of the work by an ad hoc parliamentary investigative committee established in July 2025 on the matter set out above. MP Batnairamdal Otgonshar, the chair of the ad hoc committee gave an interview to news outlet urug.mn on 3 December and discussed the main issues and focus of the open hearing. He expects that extensive information and facts relating to the Oyu Tolgoi project will become public knowledge as a result of the hearing.
Interestingly, during the interview, he mentioned that Rio Tinto implemented Project “Barracuda” in 2018 to protect the Investment Agreement and the documented commonly known as “Dubai Agreement” relating to the Oyu Tolgoi project. Mentioning that “Barracuda” is a predatory fish which eats other fishes, he further explained that in 2018 the parliamentary working group was established to examine matters related to the Oyu Tolgoi project. Apparently, he became aware of Project Barracuda from documents and filings from a shareholder class action initiated against Rio Tinto by minority shareholders of Turquoise Hill Resources, a majority shareholder of Oyu Tolgoi LLC. He further explained that the purpose of Project Barracuda was to undermine the efforts of the Parliamentary Working Group and the Government of Mongolia to revisit the Dubai Agreement and investigate matters related to the Investment Agreement and Oyu Tolgoi project. Project Barracuda appears to have been focused on strategizing and managing public communications and minimizing risks associated with potential renegotiations of the Dubai Agreement and other terms of the Oyu Tolgoi project.
“Barracuda” is obviously odd name to be given to a project for communications concerning Mongolia and the Oyu Tolgoi project. It almost has personal feel to it – perhaps ironically revealing “love-hate” toxic relationship between Rio Tinto and Mongolia which turns acrimonious and contentious from time to time over the years. In any event, Mongolians might find it rather hurtful and insulting that Rio Tinto names the project concerning Mongolia as “Barracuda” – it implies aggressive nature of Rio Tinto’s actions towards Mongolia or suggests that Rio Tinto is ready to “eat” Mongolia.
It is an open secret that Rio Tinto plans and implements public relations campaigns to address public sentiment and growing dissatisfaction with the Oyu Tolgoi project in Mongolia as the project failed to deliver expected benefits to Mongolia. It is yet to be seen next week whether during the open hearing more information will become public knowledge on the Oyu Tolgoi, specifically on Project Barracuda or other efforts of Rio Tinto to undermine Mongolia’s efforts to improve the benefits of the Oyu Tolgoi project to the people of Mongolia. Regardless of the public hearing, we will continue our reporting on this matter.
By M.Baavar
