- Write by:
-
Wednesday, November 20, 2019 - 4:44:57 PM
-
1055 Visit
-
Print
Mining News Pro - Rio Tinto is facing another blow at the Oyu Tolgoi project in Mongolia with a non-governmental organisation (NGO) initiating a lawsuit relating to the project’s development and finalisation.
According to Mining News Pro - The NGO, Darkhan Mongol Nogoon Negdel has filed a lawsuit with the Administrative Court in Mongolia about the government’s process in finalising Oyu Tolgoi’s underground mine development and financing plan (UDP).
Early reports suggest the administrative court has upheld Darkhan Mongol Nogoon Negdel’s claims that the Mongolian government did not follow due process when finalising the UDP.
However, the court’s formal written ruling is not expected to be released for a few weeks.
Rio Tinto stated in a media release that the company “strongly refutes any suggestion that the UDP or any of the foundational Oyu Tolgoi agreements are illegal”.
“The UDP has allowed for the development of the Oyu Tolgoi mine in a manner that has given rise to significant long-term benefits to the people of Mongolia,” the company said.
This isn’t the first challenge Rio Tinto has faced at the Gobi Desert-based mine, which has experienced construction and financial setbacks since construction started in 2010 .
Rio Tinto was faced with budget concerns, workers’ layoffs and accusations of cost overruns and unpaid taxes regarding Oyu Tolgoi, but it remained committed to the copper-gold project.
The company has also delayed production from Oyu Tolgoi by 16 to 30 months, from the first quarter of 2021 to May 2022 or June 2023.
Once fully operational, Oyu Tolgoi is expected to account for nearly one-third of Mongolia’s economy.
Rio Tinto said it would update the market as more information becomes available.
Short Link:
https://www.miningnews.ir/En/News/448562
Rio Tinto on Wednesday announced a deal to buy power from a new solar farm in Queensland as it seeks to green its ...
Mining News Pro - Rio Tinto has completed the acquisition of PanAmerican Silver’s stake in Agua de la Falda.
Mining News Pro - Rio Tinto has signed an initial agreement with the Yindjibarndi people and Philippines’ ACEN to look ...
Mining News Pro - Rio Tinto reported a 1.2% rise in its third-quarter iron ore shipments on Tuesday, as the ...
Mining News Pro - Rio Tinto reported a 1.2% rise in its third-quarter iron ore shipments on Tuesday, as the ...
Mining News Pro - Rio Tinto has once again cut production targets for its iron ore operations in Canada, citing extended ...
Mining News Pro - Damage caused to an Aboriginal rock shelter by mining giant Rio Tinto in August underscores the need ...
Mining News Pro - Rio Tinto has been solely funding preparatory work at the blocks it holds at Simandou, one of the ...
Mining News Pro - Rio Tinto (ASX: RIO) announced Wednesday it has reached an agreement with the government of Madagascar ...
No comments have been posted yet ...