On June 17th, a small group of protesters blocked the transportation route from the Oyu Tolgoi copper mine in South Gobi Province, Mongolia, to China. Oyu Tolgoi is one of the world’s largest known copper and gold deposits, and the protesters are calling on the majority stakeholder, Rio Tinto, to give Mongolians a larger share of the mining revenue.
In the morning of June 17th, members of the “Radical Reform Movement,” a Mongolian protest group, gathered alongside the dual-carriageway road that runs through the desolate terrain from the copper mine to the Chinese border. They set up roadblocks using tires and tree branches.
The banner hung by the protesters read “Stop Rio Tinto.” The Oyu Tolgoi copper mine is jointly owned by the Mongolian government (34% stake) and Rio Tinto Group (66% stake), with Rio Tinto representing both parties in mine operation management.
Oyu Tolgoi LLC, in a statement posted on Facebook, stated that the blockade started at 9 a.m. local time on Wednesday, preventing trucks from transporting copper concentrate to the Chinese border, posing risks of “transport suspension, export interruption, and inability to fulfill contractual obligations.”
“For every week of export delay, Mongolia’s national budget faces the risk of approximately 35 billion tugriks (about $13 million) in tax revenue loss, including around 21 billion tugriks (about $7.8 million) in revenue loss from mineral resource usage fees.
“Oyu Tolgoi accounts for about 9% of Mongolia’s national fiscal tax revenue and injects approximately 23 billion tugriks (about $8.5 million) into the economy daily, supporting numerous households and domestic business operators over the long term.
“Oyu Tolgoi respects the freedom of association and expression of citizens and has always valued meeting with and addressing the concerns of individuals and non-governmental organizations who raise demands, as well as maintaining practical communication. However, the current situation is having a significant impact on the national budget and may harm Mongolia’s and the Mongolian mining industry’s reputation internationally.”
In the statement’s conclusion, the company urges for the normal and continuous operation of the mine.
It is currently unclear whether this protest is a one-day action to raise awareness or could escalate into a long-term standoff.
Oyu Tolgoi copper mine is one of the world’s largest known copper and gold deposits, located approximately 80 kilometers from the Chinese border, also containing substantial gold reserves.
The protesters are demanding a larger share of mining revenue for Mongolians, a demand that has been ongoing in Mongolia for years. Despite Mongolia’s abundant mineral resources and mining activities, poverty remains a pressing issue. Official statistics from Mongolia show a poverty rate of around 25% to 30% in recent years, meaning approximately a quarter of the population struggles with living conditions. Poverty is predominantly concentrated in the outskirts of the capital, Ulaanbaatar, remote pastoral areas, and unemployed or low-income families in urban areas.
Rio Tinto is a British-Australian mining group listed in Australia and the UK with no single government ownership. However, China’s Chinalco is one of its largest individual shareholders. During the 2008 global financial crisis, Rio Tinto faced heavy debts; Chinalco once proposed larger investments and even hoped to significantly increase its ownership. Concerns in Australian political circles and public opinion about excessive Chinese influence sparked debates on national security and resource control, leading the Australian government to establish a 14.99% ownership limit. Chinalco’s stake in Rio Tinto’s overall company is around 11%.
Mongolia’s Oyu Tolgoi open-pit mine started operations in 2011, with its copper concentrator plant – Mongolia’s largest industrial complex built to date – commencing the processing of ore into copper concentrate in 2013. The existing infrastructure at Oyu Tolgoi will ensure continuous operations of the mine for decades to come.
In March 2023, the Oyu Tolgoi underground mine officially commenced production, positioning Oyu Tolgoi as one of the world’s leading copper producers. Once fully operational, the underground mine and open-pit mine at Oyu Tolgoi are expected to produce enough copper annually to power over 6 million electric vehicles. By 2030, the copper mine is projected to become the fourth-largest copper mine globally. Rio Tinto officially states that it is one of the most modern, safest, sustainable, and water-efficient mines globally, with over 97% of the workforce being Mongolian.