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Rio Tinto (RIO -0.5%) reportedly considers a temporary halt to construction work at its $6.2B...

Rio Tinto (RIO -0.5%) reportedly considers a temporary halt to construction work at its $6.2B Oyu Tolgoi copper and gold project in Mongolia to protest the government's demands for a greater share of profit from the mine. Shares of Turquoise Hill Resources (TRQ -3.6%), power supplier to the mine and 51% owned by RIO, are slammed.
Comments (3)
  • marpy
    , contributor
    Comments (792) | Send Message
     
    Well - I suspect that Walsh has the balls Albanese did not have and none of the baggage that Albanase had. I suspect that he is going to do what ever it takes to get the IA issue sorted out once and for all and for good. TRQ and TINTO just can not go on with the current situation where every time a new government get elected the GOM thinks that they can milk more money from Tinto and TRQ. The GOM was obviously talking out of both sides of their mouths - making positive public statments while saying something else to Tinto privately. So far the GOM have accomplished the following:

     

    1) Shut down the minimal mining that was happening at Tavan Tolgoi.

     

    2) Shut down mining at South Gobi.

     

    3) Made it impossible for Mongolia to issue any more bonds on world markets.

     

    4) Chased most foreign investors to the sidelines drastically reducing investments in Mongolia.

     

    5) They are on the edge of shutting down development at OT - buy far the biggest project and source of income in all of Mongolia.

     

    They have P-d off just about anybody trying to do business with them!

     

    What they have coming in for tax revenue has to be drastically reduced and will be reduced further going forward. This has also got to be affecting a large number of people as no work means that they get laid of from mines, suppliers and service providers. Tinto has huge earnings outside of Mongolia, an Iron clad contract with respect to the OT development and can afford to wait till the GOM wakes up. For Tinto to consider such a move, they were obviously getting nowhere with the GOM!

     

    Looks like the line in the sand is now drawn!!!
    Read more at http://bit.ly/WBpcJ0
    30 Jan 2013, 12:05 PM Reply Like
  • MineMan
    , contributor
    Comments (235) | Send Message
     
    This certainly will make the candidates for office and those looking to stay in office look VERY bad.
    No chicken in every pot for Mongolian people.
    Even a temporary shut down of OT will have ripple effects across the entire economy, and last for several years.
    make sure to make comments onthe Mongolian news media also.
    30 Jan 2013, 04:15 PM Reply Like
  • pjdsa
    , contributor
    Comments (2) | Send Message
     
    Well said, nothing much else to say.
    31 Jan 2013, 03:33 AM Reply Like
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