Authorization

Anti-corruption body turns eye to Rio Tinto's Mongolian copper mine

Rio Tinto is facing further scrutiny of an expensive new copper mine in Mongolia after it revealed the country’s Anti-Corruption Authority (ACA) had demanded financial information on the project.
The ACA request comes as part of “an investigation about possible abuse of power by authorized officials during negotiation of the 2009 Oyu Tolgoi Investment Agreement”, according to Turquoise Hill, the Rio subsidiary that is building the giant Oyu Tolgoi mine.
“There is no indication in the ACA information request to suggest that Oyu Tolgoi is a subject of the investigation,” the company added.
Rio Tinto
Oyu Tolgoi has been earmarked as one of Rio Tinto’s most important new growth projects, as the FTSE 100 miner has set aside $5.3bn to fund expansion of the mine.
Located in the sparsely populated southern Gobi desert, Oyu Tolgoi began development in earnest in 2009 and started production four years later. It has been estimated that it could expand Mongolia’s GDP by a third.
The government of Mongolia owns 34pc of the project and Turquoise Hill - which is listed in Toronto with a market cap of ?4.7bn - owns the rest. Rio in turn owns 51pc of Turquoise Hill, and is the operator of the mine.
Anti-corruption body turns eye to Rio Tinto's Mongolian copper mine

Oyu Tolgoi is currently an open pit, but will be expanded underground
However the project has been beset by complications. Rio Tinto admitted last month it may incur extra costs in order to build a power plant at the site within the next four years, after the Mongolian government ordered it to source energy from domestic providers.
Earlier this year Turquoise Hill found itself unable to make copper deliveries because of protests by Chinese coal truckers.
Meanwhile the Mongolian government has claimed that Oyu Tolgoi owes $155m in unpaid taxes. A Dutch non-profit organisation has suggested that amount could be as high as $700m.
Rio boss Jean Sebastian ‘J-S’ Jacques, who shepherded the development of the mine when he was head of the copper division, has insisted “we pay our fair share of tax wherever we operate".
Rio shares in London were up 0.4pc in afternoon trade at ?37.28.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Июнь 2018    »
ПнВтСрЧтПтСбВс
 123
45678910
11121314151617
18192021222324
252627282930