Business
Rio Tinto Resumes Copper Exports After Protest Disrupts Mongolian Mine Operations
Rio Tinto has resumed Oyu Tolgoi copper exports in Mongolia after protesters briefly blocked a key transport route used to ship copper concentrate to China. The protest group demanded a larger share of mining revenue for Mongolians and raised concerns about foreign involvement in the country's mining sector. The blockade temporarily affected Mongolia's copper supply to China and highlighted the importance of Oyu Tolgoi, one of the world's largest copper mines. The mine contributes around 9% of Mongolia's tax revenue and is jointly owned by Rio Tinto and the Mongolian government.
Key Highlights
- Rio Tinto has restarted copper exports from Mongolia.
- The exports were halted due to protests.
- Protesters were complaining that Mongolians do not get enough of the money from their mines.
- It suspended shipments of copper to China for some time as a result of the blockade.
Copper exports from the Oyu Tolgoi mine in Mongolia, by Rio Tinto and Turquoise Hill Resources, restarted today after shipments to shine was suspended earlier this week due to a protest.
The protest stopped the traffic on a key road, blocking trucks containing copper concentrate from the mine to the Chinese border. The blockade caused a temporary halt to exports from one of the biggest copper mining projects in the world.
Protestors are demanding more share from the mining revenue
It was held by the Radical Reform Movement, a group which is seeking a higher share of earnings from the nation's mining industry for natives. The group shared videos of protesters setting up a banner reading "Stop Rio Tinto" across the route used by trucks carrying copper concentrate to restrict access.
Blockade Temporarily Halted Copper Shipments
Located approximately 80km from the Chinese border in the Gobi Desert, the Oyu Tolgoi (OT) mine is one of the world's largest copper–gold projects. The Mongolian government owns 34% of the mine and Rio Tinto owns 66%.
The mining company cautioned that if short-lived, mill disruptions could run costs for the Mongolian government to 35 billion tugrik (US$13.3 million) over a week in lost revenue. Oyu Tolgoi generates around 9% of tax income for Mongolia's budget.
Mongolian Prime Minister Uchral Nyam-Osor ordered officials to act against anyone who interferes with business against the law. Copper from the mine is a significant source of supply that feeds China, supplying electric vehicles, solar power and wind energy.
Source: Bloomberg
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