Shares of Turquoise Hill Resources (NYSE: TRQ) had tumbled more than 20% by 10:30 p.m. EST on Monday. Weighing on the mining stock was an update on tax arbitration, its discussions with the Government of Mongolia, and a proposed class action against the company.
On Dec. 23, Turquoise Hill said that it had received a tax assessment from the Mongolian Tax Authority for $228 million in cash tax relating to an audit on taxes imposed on and paid by its Oyu Tolgoi mining subsidiary between 2016 and 2018. After evaluating the claim, the company intends to apply for arbitration. It believes that it has paid all the taxes and charges required under current Mongolian law.