Rio copper exports delayed by Mongolia
Rio Tinto's new dawn in Mongolia has again had the rug pulled from beneath it, with the Mongolian Government spectacularly spoiling a party to celebrate first commercial sales from the Oyu Tolgoi mine.
A ceremony to mark the first sales was due to take place last night, but Rio has said intervention from the Mongolian Government prevented the event from going ahead.
“Oyu Tolgoi is ready to start its first shipments of copper concentrate from its Mongolian mine and all necessary permits to do so have been received from relevant authorities. However, plans to start shipping on Friday 21 June have been postponed at the request of the Government of Mongolia," said Rio spokesman Bruce Tobin.
"Rio Tinto is keen to start shipping as soon as possible in order for the benefits from Oyu Tolgoi to start flowing to all parties, including the people of Mongolia. Shipping will commence as soon as the Government indicates its support for us to do so.”
It's the second time in the space of a week that a ceremony to mark the start of commercial production has been postponed at the last minute.
Rio has long endured a tense relationship with the Mongolian government, which has repeatedly campaigned for a bigger share of Oyu Tolgoi's wealth.
The mine will dominate the economy of the developing nation, and has duly become a political football there.
This current saga is curiously timed given the nation will go to the polls for its presidential election next week.
The ramp-up of Oyu Tolgoi was supposed to be a bright spot in an otherwise dark year for Rio, which is in the midst of a severe austerity campaign after axing its chief executive Tom Albanese in January.
Oyu Tolgoi would be one of the five biggest copper mines in the world if it were expanded to full potential, and its development is a crucial plank in Rio's bid to reduce its reliance on Iron ore.
A ceremony to mark the first sales was due to take place last night, but Rio has said intervention from the Mongolian Government prevented the event from going ahead.
“Oyu Tolgoi is ready to start its first shipments of copper concentrate from its Mongolian mine and all necessary permits to do so have been received from relevant authorities. However, plans to start shipping on Friday 21 June have been postponed at the request of the Government of Mongolia," said Rio spokesman Bruce Tobin.
"Rio Tinto is keen to start shipping as soon as possible in order for the benefits from Oyu Tolgoi to start flowing to all parties, including the people of Mongolia. Shipping will commence as soon as the Government indicates its support for us to do so.”
It's the second time in the space of a week that a ceremony to mark the start of commercial production has been postponed at the last minute.
Rio has long endured a tense relationship with the Mongolian government, which has repeatedly campaigned for a bigger share of Oyu Tolgoi's wealth.
The mine will dominate the economy of the developing nation, and has duly become a political football there.
This current saga is curiously timed given the nation will go to the polls for its presidential election next week.
The ramp-up of Oyu Tolgoi was supposed to be a bright spot in an otherwise dark year for Rio, which is in the midst of a severe austerity campaign after axing its chief executive Tom Albanese in January.
Oyu Tolgoi would be one of the five biggest copper mines in the world if it were expanded to full potential, and its development is a crucial plank in Rio's bid to reduce its reliance on Iron ore.
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