Friday, May 2, 2014

Mongolia to resolve Rio Tinto copper mine tensions

The deadlock between Rio Tinto and the Mongolian government over a giant copper mine should me resolved by September, with underground mining beginning within two years, according to a government official.


Construction of the underground mine at Oyu Tolgoi, one of the world's largest undeveloped copper deposits, was put on hold last year when the Mongolian government said financing had to be approved by parliament, because it was concerned that cost-over-runs would delay when the country would receive its share of profits.

But in a stark change of tone, Mongolia’s vice minister for economic development, Chuluunbat Ochirbat, said the government had learnt from its mistakes and financing would begin in September.

"We are under arrangements and negotiations with Rio Tinto now to complete the process by September this year," he said on the sidelines of a conference in London.

"Underground mining will be put into operation in a year and a half or two years time," he added.

The deadlock between Rio Tinto and the Mongolian government over a giant copper mine should me resolved by September, with underground mining beginning within two years, according to a government official.

Construction of the underground mine at Oyu Tolgoi, one of the world's largest undeveloped copper deposits, was put on hold last year when the Mongolian government said financing had to be approved by parliament, because it was concerned that cost-over-runs would delay when the country would receive its share of profits.

But in a stark change of tone, Mongolia’s vice minister for economic development, Chuluunbat Ochirbat, said the government had learnt from its mistakes and financing would begin in September.

"We are under arrangements and negotiations with Rio Tinto now to complete the process by September this year," he said on the sidelines of a conference in London.

"Underground mining will be put into operation in a year and a half or two years time," he added.

No comments:

Post a Comment