Rio halted the planned expansion at the mine in July this year, saying it has been notified by the Mongolian government that the terms of the project financing will require parliament approval.
Rio spokesman said that the company will lay off up to 1,700 employees and contractors, and the process will take place in line with domestic and international labor laws and regulations.
The mine is expected to produce an average of 430,000t of copper and 425,000oz of gold annually for 20 years.
Rio’s unit owns 66% stake in Oyu Tolgoi mine, while the remaining stake is owned by the Mongolian government.
