According to the Complaint, Turquoise Hill Resources Ltd. is an international mining company focused on the operation and development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company’s principal and only material resource property. Oyu Tolgoi is a combined open pit and underground mining project in the Khanbogd sum, or district, in Mongolia, located in the south Gobi Desert. The site was discovered in 2001 and is currently being developed as a joint venture between Turquoise Hill, which has a 66% ownership stake in the mine, and the Mongolian government, which has a 34% stake.
The Complaint alleges that, during the Class Period, the Defendants violated the federal securities laws by making materially false and misleading statements and failing to disclose material facts regarding the development of the Oyu Tolgoi copper-gold mine. Among other things, the Complaint alleges that Defendants failed to disclose that the progress of underground development of Oyu Tolgoi was not proceeding as planned; that there were significant undisclosed underground stability issues that called into question the design of the mine; that the publicly disclosed estimates of the cost, completion and production dates from the underground mine were not achievable; and that, later in the Class Period, “challenging ground conditions” at the site were much more severe than Defendants represented, and made it impossible for Turquoise Hill and Rio Tinto to achieve their estimates.
On October 15, 2020, Plaintiff filed a corrected Complaint.