Oyu Tolgoi

The Mongolian Parliament has supported a plan to resolve the long-running dispute with Rio Tinto regarding the Oyu Tolgoi copper mine.

In 2013, the mining company suspended its development schedule to dig a $5.4bn underground mine at Oyu Tolgoi, due todisputes with the government over cost overruns for the existing open pit mine.

Mining ministry spokesman Galsan Bodibilguun told Reuters that Mongolia Prime Minister Chimed Saikhanbileg submitted a proposal to parliament, which noted that the government would work to ‘resolve underground investment issues’ and boost development by year-end.

Mongolia’s economy has witnessed a decline in coal prices and export figures, and is said to be suffering from uncertainty over the government’s policies on mining. Due to this, Saikhanbileg intends to boost foreign investment in mining in the region.

"The government is seeking a buyer for its stake and will accept royalties in return."

Oyu Tolgoi copper mine is 34%-owned by the Mongolian Government, while the rest is held by Rio Tinto’s Turquoise Hill Resources division.

Bodibilguun also said that the government is seeking a buyer for its stake and will accept royalties in return.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to Mining Weekly, Rio Tinto is not interested in increasing its own share, so the government is seeking a third party buyer.

The combined open pit and underground mine project Oyu Tolgoi is located in Khanbogd, in the south Gobi Desert, about 235km east of the Ömnögovi province capital Dalanzadgad.

Discovered in 2001, the site is being developed as a joint venture between Turquoise Hill Resources and the Government of Mongolia.


Image: Oyu Tolgoi copper and gold mine in South Gobi. Photo: courtesy of Brücke-Osteuropa.