Rio Tinto still in negotiations to flick Oyu Tolgoi switch

RIO Tinto insists the ancient rivalry between Mongolia and China is not contributing to delays in sourcing a crucial power link for the company”s most important growth project.

Negotiations to supply Chinese electricity across the Mongolian border to help run Rio”s massive Oyu Tolgoi copper and gold mine have been under way for more than a year, and are still incomplete despite first production from the project expected in coming weeks.

The power link is needed if Rio is to achieve commercial production from the project in the first half of next year, and fears of an international stoush have grown as the impasse has continued. But Rio”s head of copper, Andrew Harding, said the impasse was entirely commercial.

“”I can guarantee there is nothing of a geopolitical nature that is actually infiltrating itself into the negotiations … it is absolutely about the commercial terms in the contract,”” he said.

Rio is dominated by its iron ore business, which supplies about 80 per cent of the company”s revenue.
Despite the iron ore sector taking a beating on the back of a price slump, chief executive Tom Albanese said he had no concerns about the bias.