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  • Oyu Tolgoi Yo-Yo Continues 1 comment
    Jun 13, 2013 4:49 PM | about stocks: RIO, TRQ

    It was reported yesterday that shipments of concentrate from the mine would begin 6/14/13. The very next day that has been cancelled. This is the kind of yo-yo decision making and information management that is, in my view, killing Mongolia's credibility with foreign investors. The good news is that Rio Tinto continues to mine and concentrate is piling up at the mine awaiting an agreement in order to begin shipping. Hopefully this will begin after the presidential elections on 6/26/13.

    Reuters:

    Reuters and traders had been invited to a ceremony on June 14 at the site in Mongolia's South Gobi Desert to witness the first exports from the copper and gold mine to China, but were informed late on Wednesday the trip was off.

    Oyu Tolgoi LLC said nothing had changed from previous statements that it was expecting first exports before the end of June. Rio Tinto declined to comment.

    Start-up of the mine, the biggest in the country, is being closely watched by other companies and investors in Mongolia, who have been rattled over the past year by new regulations and concerns raised by the government over Oyu Tolgoi.

    (skip)

    "We're hopeful come the second half of the year people will become a bit more positive on Mongolia," said Sam Spring, chief executive of Kincora Copper, a copper explorer with a project near Oyu Tolgoi.

    "Hopefully, Oyu Tolgoi ramping up and the completion of the project financing helps, as does the presidential election."

    Disclosure: I am long TRQ.

    Stocks: RIO, TRQ
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  • MSE.Investor
    , contributor
    Comments (90) | Send Message
     
    May be the first shipment could happen before the elections
    so that the current president can enjoy more credit showing to voters that:

     

    1) OT is producing and will bring revenues to Mongolia NOW,

     

    AND

     

    2) HE is making sure RIO/TRQ/OT are in FULL COMPLIANCE with ALL the laws and regulations of Mongolia, whatever they are,....(which may not have been the case for a june 14 "event" ...as pointed out by Reuters)

     

    http://reut.rs/11baYV2

     

    "By Terrence Edwards
    ULAN BATOR, June 13 | Thu Jun 13, 2013 2:31am EDT
    (Reuters) - Rio Tinto is delaying an event to mark first exports from the $6.2 billion Oyu Tolgoi mine in Mongolia, as it awaits final clearance from the government, ..."

     

    so the {June 14 postponed event} with, may be, a new one just before june 26 ...could in fact be a political pre-elections message to voters.
    "Trust me, I can control everything and make it happened!"

     

    Who knows....We will see.
    Not always totally straightforward.
    14 Jun 2013, 09:17 AM Reply Like
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