Thursday, August 15, 2013

Rio Tinto Pokes Mongolia in the eye

Mongolian mine sacks 1,700 amid funding row - SCMP / Bloomberg | As many as 1,700 workers at Rio Tinto's US$6.6 billion Oyu Tolgoi copper and gold mining project in Mongolia, where shipments began last month, have been laid off amid a financing dispute. "This is a difficult time for everyone at Oyu Tolgoi but it is especially difficult for those who work on the underground mine," Oyu Tolgoi said. The lay-offs are a mix of contractors and employees. The action at Oyu Tolgoi, owned by Rio and the Mongolian government, follow months of disagreement between the two sides over how to share revenue from the mine. The lack of a decision has already hurt the Mongolian economy, with foreign direct investment down 43 per cent this year.