Copper

Landmark Chinese copper deal with Afghanistan at risk 0

copperafghanSource: Fox Business

A consortium of Chinese investors has demanded a review of a landmark $3 billion deal to produce copper in Afghanistan, the Ministry of Mines said on Monday, putting at risk one of Kabul’s greatest hopes for economic independence.

It said China Metallurgical Group (MCC) and Jiangxi Copper want new terms that would cut their royalties to the government, release them from building a power plant and copper smelter, and postpone the laying of a railway. More…

Turquoise Hill posts bigger Q2 loss than expected 0

Turqouise Hill LogoSource: CTV News

Turquoise Hill Resources Ltd. (TSX:TRQ) has reported a bigger second-quarter loss than analysts were expecting.

The Vancouver-based mining company, a subsidiary of Rio Tinto (NYSE:PLC) that’s developing a major copper mine in Mongolia, had a US$105.3-million net loss, or 10 cents per share, in the second quarter. More…

Mongolia to Rio Tinto: fund Oyu Tolgoi mine expansion with cash flow 0

oyu_tolgoi_mine_editedMongolia wants the planned US$5.1 billion expansion of Rio Tinto’s Oyu Tolgoi mine to be financed from cash flow until a dispute over the cost of the biggest foreign investment in the country is resolved.

Cost overruns at the copper and gold mine, 34 per cent owned by Mongolia, are increasing the debt the government owes to Rio’s Turquoise Hill Resources unit, which operates the project, the minister of mining, Davaajav Gankhuyag, said on Friday. More…

In Gas We Trust: Will Papua New Guinea’s Resources Really Transform the Country? 0

To boost Papua New Guinea's economic development, the country needs to prudently manage its natural resources

To boost Papua New Guinea’s economic development, the country needs to prudently manage its natural resources

By John Enos

As one of the most isolated and remote countries on earth, Papua New Guinea (PNG) has caught the eye of investors due to its substantial natural resource wealth. PNG achieved an impressive 8% GDP growth in 2012 and 6.1% growth is projected this year, thanks to the mining sector. Growth is expected to slow to 4%, however, as Exxon-Mobil’s US $19 billion Papua New Guinea Liquefied Natural Gas (PNG LNG) project nears completion in 2014. Revenues flowing to both mining companies and the PNG government have been hit by sliding global commodity prices, highlighting why Papua New Guinea must diversify its economy to avoid the perils of its resource windfall. More…

In Gas We Trust: Will Papua New Guinea's Resources Really Transform the Country? 0

To boost Papua New Guinea's economic development, the country needs to prudently manage its natural resources

To boost Papua New Guinea’s economic development, the country needs to prudently manage its natural resources

By John Enos

As one of the most isolated and remote countries on earth, Papua New Guinea (PNG) has caught the eye of investors due to its substantial natural resource wealth. PNG achieved an impressive 8% GDP growth in 2012 and 6.1% growth is projected this year, thanks to the mining sector. Growth is expected to slow to 4%, however, as Exxon-Mobil’s US $19 billion Papua New Guinea Liquefied Natural Gas (PNG LNG) project nears completion in 2014. Revenues flowing to both mining companies and the PNG government have been hit by sliding global commodity prices, highlighting why Papua New Guinea must diversify its economy to avoid the perils of its resource windfall. More…

Rio puts $5 billion Mongolia mine expansion on hold 0

Rio Tinto
Reposted from Reuters

(Reuters) – Rio Tinto has put on hold a more than $5 billion underground expansion of its giant Oyu Tolgoi copper mine in Mongolia, after the government said parliament would need to approve financing for the project.

The delay marks the latest bump in the road for the global miner at one of its biggest projects, which started exporting copper from an open pit mine at the site this month, after two last-minute hiccups in securing government approval. More…

Rio faces more hurdles at Oyu Tolgoi, Mongolia shareholder says 0

Oyu-Tolgoi
Reposted from Reuters

Rio Tinto faces lingering disputes with the Mongolian government over its Oyu Tolgoi copper mine, said a director of the state company that owns a third of the mine, highlighting risks confronting the massive project.

According to Tserenbat Sedvanchig, executive director of Erdenes Oyu Tolgoi, the government still has 22 points of dispute with Rio Tinto, operator of the project which is expected to boost the country’s economy by 35 percent by 2020. More…

With Successful Elections, Legislative Reform, and the Launch of Rio Tinto’s Mega-Mine, Mongolia’s Outlook Brightens 0

Mongolia is on investors' radars again due to successful elections and Oyu Tolgoi's inaugural copper shipment

Mongolia is on investors’ radars again due to successful elections and Oyu Tolgoi’s inaugural copper shipment

By John Enos

Mongolia, once the darling of foreign investors and mining corporations, has had a large question mark looming over it over the past few years as the government has backtracked on previously agreed upon mining profit shares, scaring off many investors and sending the country’s stock exchange on a downward spiral. In recent months, however, Mongolia’s outlook has brightened due to the country’s recent election, the passage of a new Securities Law enacted to further safeguard investors’ interests, and the first successful copper shipment from Oyu Tolgoi mine. Invigorated by this rekindled investor appetite, Mongolia’s economy is projected to achieve 14% GDP growth this year and 11.6% growth in 2014. More…

Mongolia says Rio Tinto copper mine can start shipments to China 0

Enkhnaraa, 2, looks out from her home located near the OyuTolgoi mine October 8, 2012 in the south Gobi Desert, Khanbogd region, Mongolia. Her father is employed at the mining site.

Enkhnaraa, 2, looks out from her home located near the OyuTolgoi mine October 8, 2012 in the south Gobi Desert, Khanbogd region, Mongolia. Her father is employed at the mining site.

Reposted from The Montreal Gazette
By Michael Kohn, Bloomberg News

Tensions between Mongolia’s government and Rio Tinto Group over the $6.6 billion Oyu Tolgoi mine have eased sufficiently to start shipping copper concentrate this week, the country’s mining minister wrote in a post on Twitter today.

“There is no significant problem with the Oyu Tolgoi mineral export contract,” Davaajav Gankhuyag said. “The first shipments will start on July 9.” More…

Mongolia tells Rio Tinto to delay Oyu Tolgoi copper exports 0

By 2020, Oyu Tolgoi is expected to boost Mongolia’s economy by about a third.

By 2020, Oyu Tolgoi is expected to boost Mongolia’s economy by about a third.

Reposted from South China Morning Post
By Reuters

Rio Tinto said its plan to start exporting copper from the US$6.2 billion (HK$48.1 billion) Oyu Tolgoi copper mine on Friday has been delayed at the request of the Mongolian government, ahead of a presidential election on June 26.

Journalists had been invited last week to attend a ceremony at the copper and gold mine on June 14 to mark the first exports. That was postponed to June 21, but the event was again cancelled at the last minute. More…

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