ULAANBAATAR, Mongolia — A group of demonstrators in Mongolia brought copper exports to a standstill at a major Rio Tinto mining operation on Wednesday, cutting into the flow of a critical material that fuels China’s renewable energy industry.
The demonstrators belong to an organization known as the Radical Reform Movement, which has long pushed for Mongolians to receive a bigger cut of the wealth generated by the country’s mineral resources. Despite sitting atop enormous reserves of valuable minerals, Mongolia continues to struggle with widespread poverty. Copper plays a central role in manufacturing electric vehicles and building solar and wind energy systems — sectors where China holds a dominant global position.
Whether the demonstration would last only a single day as a way of raising awareness, or stretch into a prolonged blockade with serious economic consequences for both nations, remained unclear.
The Radical Reform Movement shared footage on Facebook showing a small number of protesters gathered around a barrier placed across a two-lane road cutting through a remote, open landscape under bright sunshine. A white banner bearing the words “Stop Rio Tinto” in red lettering was stretched across a large tree branch blocking the road, positioned in front of a wall of tires.
The Oyu Tolgoi mine is an enormous operation tapping into one of the world’s largest copper deposits, buried deep beneath the Gobi Desert roughly 80 kilometers — about 50 miles — north of the Chinese border. The site also holds substantial gold reserves and is expected to rank as the fourth largest copper mine on the planet once it reaches full production, according to Rio Tinto. The British-Australian mining company holds a 66% ownership stake in the mine, while the Mongolian government owns the remaining 34%.
The jointly operated mining company confirmed that shipments of copper concentrate were stopped after the road was blocked Wednesday morning. The company noted that the Oyu Tolgoi mine accounts for roughly 9% of Mongolia’s total tax revenue, and cautioned that a week-long disruption could cost the Mongolian government 35 billion Mongolian Tugrik, equivalent to approximately $13.3 million.
During a Cabinet meeting, Mongolian Prime Minister Uchral Nyam-Osor directed the minister of justice and internal affairs to uphold the law and pursue accountability for anyone unlawfully obstructing or interfering with business operations that are being carried out in compliance with existing laws and regulations, according to a post on the government’s official Facebook page.
While the Radical Reform Movement has gone so far as to call for foreign investors to be removed from the country entirely, not everyone shares that position. However, there are voices within the Mongolian government who are calling for the country’s agreement with Rio Tinto to be renegotiated so that Mongolia receives a greater share of the financial benefits.
