Shares in Turquoise Hill took a hit on January 16 after it revealed its massive Oyu Tolgoi copper and gold mine in Mongolia has been imposed a 155 million USD tax bill. The company said in a statement that the amount relates to an audit on taxes imposed and paid by Turquoise Hill from 2013 and 2015. “Turquoise Hill is of the firm view that Oyu Tolgoi LLC has paid all taxes and charges required under the Investment Agreement (and reconfirmed in the Underground Mine Development and Financing Plan) and Mongolian law,” the company stated. Shares of the company were almost five percent down on Tuesday in Toronto at 11:03 a.m., and had lost 2.7 percent of their value on the New York Stock Exchange. In 2014, Oyu Tolgoi was hit with a 130 million USD tax act for incomplete payment of taxes during its first phase of development. After negotiations, the amount to be paid to the government was reduced to 30 million USD. Turquoise Hill Resources also recently announced its fourth quarter 2017 production for Oyu Tolgoi. “Oyu Tolgoi had a strong fourth quarter setting quarterly and annual records for open pit material mined as well as concentrator throughput. They also met annual production guidance, which is an excellent achievement given the grade challenges of 2017,” said Jeff Tygesen, CEO of Turquoise Hill. Material mined in the fourth quarter increased 5.3 percent over the third quarter meanwhile ore treated increased 2.1 percent over the third quarter. Higher mill availability resulted in a 20.8 percent increase in concentrate production compared to the third quarter. Copper production also increased 22.8 percent compared to the previous quarter due to higher grades and improved mill availability. In addition, gold production increased 12.9 percent over the last quarter due to increased grades and higher concentrate production. Oyu Tolgoi is expected to produce 125,000 to 155,000 tons of copper and 240,000 to 280,000 ounces of gold in concentrates in 2018.