Canadian mineral exploration company Turquoise Hill Resources has announced the suspension of concentrated shipments from its Oyu Tolgoi mine in Mongolia to the Chinese border.

The suspension became effective from 1 December and was due to the new requirement at the China-Mongolia border to utilise one joint coal and concentrate crossing route.

The company claimed that the new requirement leads to overlong wait times at the border, thereby causing safety and security concerns.

After the company announced the development through a statement, its shares fell by 2.5%, reported Reuters.

Duration of this suspension is still not clear as Oyu Tolgoi is trying to have the issue clarified with the respective Chinese and Mongolian authorities.

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.
"The company claimed that the new requirement leads to overlong wait times at the border, thereby causing safety and security concerns."

In an earlier statement, the company is estimated to produce 175,000 to 195,000 tonnes of copper in concentrates and 255,000 to 285,000 ounces of gold in concentrates this year from this mine located in the Gobi desert.

This announcement comes a day after new fees were levied on commodity shipments between China and Mongolia, after a diplomatic fight erupted due to Tibetan spiritual leader, the Dalai Lama's visit to the Mongolian capital, Ulaanbaatar.

The Dalai Lama is deeply revered by Mongolian Buddhists, but China considers him to be a separatist leader of Tibet, the news agency reported.

Turquoise Hill is a subsidiary of Rio Tinto, which holds a 66% stake in the Oyu Tolgoi mine with operating responsibility.

The Mongolian government owns the remaining interest.