Protesters calling for a larger share of mining revenue have blocked copper exports from Rio Tinto's Oyu Tolgoi mine in Mongolia, a key supplier to China's renewable energy sector. The Mongolian government has ordered law enforcement to clear the blockade.
The blockade disrupts the supply of copper, a crucial mineral for China's renewable energy ambitions, potentially impacting global green energy transition efforts. It also highlights ongoing tensions in Mongolia over the distribution of wealth generated from its significant mineral resources.
Protesters in Mongolia have blocked copper exports from Rio Tinto's Oyu Tolgoi mine, a critical supplier to China's renewable energy sector. The group, known as the Radical Reform Movement, is demanding a greater share of the mine's revenue for Mongolians, citing persistent poverty despite the nation's mineral wealth. The Oyu Tolgoi mine, a massive copper and gold project in the Gobi Desert near the Chinese border, is expected to be one of the world's largest copper mines upon full operation.
Rio Tinto confirmed that shipments of copper concentrate were halted following the road blockade. The company stated that the Oyu Tolgoi mine contributes approximately 9% of Mongolia's tax revenues, and a week-long blockage could cost the government an estimated 35 billion Mongolian Tugrik ($13.3 million).
Mongolian Prime Minister Uchral Nyam-Osor has instructed the justice and internal affairs ministers to enforce the law and hold accountable those unlawfully obstructing business operations. Some voices within the government are also advocating for a renegotiation of the agreement with Rio Tinto to ensure Mongolia receives a larger share of the benefits from its mineral resources.
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