Cargo shipments from Rio Tinto’s Oyu Tolgoi copper mine in Mongolia have been disrupted following a road blockade by protesters, according to a statement made by the mining company on social media, reported Bloomberg.
Oyu Tolgoi is located around 80km north of the Chinese border and is considered one of the world’s major copper projects.
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Trucks carrying copper concentrate to China were prevented from leaving the site after the blockade began at 9am local time.
This raised concerns over Rio Tinto’s ability to meet its contractual commitments.
According to the statement, the disturbance could have “significant disruptions to the state budget and tarnish the reputation of Mongolia and the Mongolian mining sector in the international environment”.
Rio Tinto holds a 66% stake in the mine, with the remainder owned by the Mongolian Government.
The protest comes as the mine is still progressing towards full operational capacity, at which point it is projected to become the fourth-largest copper mine globally.
A spokesperson for Rio Tinto declined to provide further comment regarding the incident.
The blockade was organised by a group known as the Radical Reform Movement, which is seeking a larger share of mining revenues for Mongolia, reported ABC News.
Videos posted online by the group showed a small number of individuals blocking a two-lane road with barriers and a banner reading “Stop Rio Tinto”.
The mine has long been a subject of controversy in Mongolia, with government officials seeking to renegotiate revenue shares.
It reportedly contributes approximately 9% of Mongolia’s tax revenues.
Mongolian Prime Minister Uchral Nyam-Osor has instructed ministers to enforce the law and hold those obstructing lawful business accountable, according to the government’s Facebook page.
The specific cause of the protests was not immediately specified.
However, the Oyu Tolgoi mine has been a point of contention in Mongolia, where authorities have called for an increased share of revenue from its operations.
