Mining Weekly reported that Rio Tinto (NYSE:RIO) is continuing to encounter challenges with the Mongolian government regarding their Oyu Tolgoi copper mine.
Articles Tagged "Oyu Tolgoi"
Mining Weekly reported that Turquoise Hill Resources (TSX:TRQ, NYSE:TRQ) announced that it has received a $225 million nonrevolving bridge facility from Rio Tinto (NYSE:RIO) for Oyu Tolgoi. As quoted in the Mining Weekly report: Turquoise Hill pointed out that, should it default under the terms of the bridge facility, Rio Tinto would be entitled to convert any outstanding [...]
Reuters reported that Rio Tinto, who had planned to start first copper shipments on June 21 from its Oyu Tolgoi copper mine, is delaying at the request of the Mongolian government.
Copper hit a seven-week low on Thursday after the Fed announced it will be cutting back its bond-buying program and preliminary data from China showed a greater risk of slowdown from copper's number-one consumer.
Rio Tinto could be a few short weeks away from exporting metal from the Oyu Tolgoi mine in Mongolia.
MINING.com reported that the United States' refusal to vote on World Bank funding aimed at expanding Rio Tinto's (ASX:RIO,LSE:RIO,NYSE:RIO) Oyu Tolgoi copper-gold mine has thrown a wrench in the company's plans as it has created pressure for the company to substantially change the project. Among other things, the US is reportedly concerned that the project's Environmental and Social Assessment "has gaps in critically important information."
Mongolia may have $2 trillion in untapped natural resources, and as only 1 percent of its land has been licensed for mining, it is an exciting exploration prospect. But the government’s flip-flopping on its investment agreement regarding Rio Tinto's massive Oyu Tolgoi copper mine, along with challenges associated with infrastructure and exports, could deter investors.
Australia's central bank expects the mining industry to wind down from its high in about a year's time, and companies such as BHP Billiton have already postponed major copper project investments. But with supplies expected to tighten further, rival Rio Tinto is prepared to continue forging ahead with developing one of the world's biggest copper mines. Who's right?
A new law limiting foreign ownership of mineral assets in Mongolia, coupled with a change in government, has rattled copper producers both large and small.
Rio Tinto's takeover of Ivanhoe Mining has put the spotlight on Mongolia's copper prospects, and has increased expectations for junior miners operating in the country.