Breakthrough for Mongolian copper border snag

The first shipments of copper concentrate from Rio Tinto’s giant Oyu Tolgoi mine in Mongolia can now move into China after a three-month bureaucratic hold-up at a remote border crossing in the Gobi desert.

The release solves a snag in Rio’s operations at Oyu Tolgoi, which began production in July, but the miner still faces more hurdles ahead.

Rio has put the second $6bn phase of the mine on hold as it negotiates financing and other terms with the government of Mongolia.
Revenues from Oyu Tolgoi could account for about one-third of Mongolia’s GDP but the problems in developing the mine have helped shape other foreign miners’ willingness to invest in the country.
Rio Tinto said this week that the hold-up in the copper concentrate shipments had prevented it from booking revenues on the first quarter of production from the mine. About 38,000 tonnes of copper concentrate were in the bonded warehouse at the port and another 122,000 tonnes stockpiled at the mine as the company and its Chinese customers sought to resolve the problem.

Importers of the concentrate had submitted the required tax paperwork, allowing the concentrate to be released from bonded warehouses where it had been stored since July 9, said Yu Juyang, a customs officer at the Urad bureau that controls the tiny Gants Mod border post.
The bureaucratic hold-up stemmed from the fact that the border crossing could only handle trade between Chinese and Mongolian companies but a party named on the contracts belonged to a third country, according to an official at the Hohhot customs bureau.
Rio is in intense negotiations with the Mongolian government over the terms of the second phase.
Mongolia will only see revenues from the mine after the miner has recouped its costs but with the price of coal – its other major export – declining, the country is eager to realise returns from its 34 per cent share of the project.


Source:Financial Times
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic