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Turquoise Hill's (TRQ) report this week outlined a smaller than expected plan for the Oyu Tolgoi...

Turquoise Hill's (TRQ) report this week outlined a smaller than expected plan for the Oyu Tolgoi mine, keeping the rate for phase two expansion at 100K metric tons/day of ore with no immediate plans to hike capacity to 160K metric tons. Peter Koven says the question is whether expansion is really on hold, or if it's Rio Tinto's (RIO) way of playing politics and sending a message to the Mongolian government.
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Comments (2)
  • jayinbaker
    , contributor
    Comments (9) | Send Message
     
    I hope it is to send a message to the Tea Bag segment of the Mongolian parliament. Any business thinking of doing business in Mongolia should think twice before doing so. When businesses can trust the government to abide by their contracts, then Mongolians will benefit and profit.
    28 Mar 2013, 12:13 PM Reply Like
  • marpy
    , contributor
    Comments (1284) | Send Message
     
    The government in Mongolia is acting like a banana republic's government. They keep changing the rules and keep causing delays.Companies like Khan resources who's operations were taken over abruptly by Russian and state entities and South Gobi coal whose operations were shut down by the state for a period of time have found out the hard way that Mongolia is not necessarily a fair or stable place to do business. This has resulted in Foreign companies looking elsewhere for investment opportunities. Rio Tinto and Turquoise hill resources (the former Ivanhoe Mines) have sunk 6 billion into this project already so they are not about to walk away. On the other hand, the Mongolian government is in desperate need of money and they are finding out that you do not get much money when you chase foreign companies away. In the end, the need for money will lead to the solution. JMO
    28 Mar 2013, 01:44 PM Reply Like
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