Rio Tinto bets on Mongolia

Mining giant Rio Tinto is setting up a new office in Mongolia, independent of its massive Oyu Tolgoi copper and gold mine, which will focus on exploration.

The opening of a new unit based in the capital Ulaanbaatar bears testimony to the credibility of Rio in a country that was recently in a dispute in Oyu Tolgoi. The charge relates to an audit of taxes imposed and paid by the mine operator between 2013 and 2015.

Force majeure was declared Thursday in the southern desert, located in the Gobi Desert, after protests by Chinese workers disrupted supplies near the border. But Rio recognizes the importance of strengthening its presence at the center of one of the world's largest copper prospects.

At the moment Mongolia is a neighboring neighbor of China, the world's copper consumer. The country is also a well-known source of untapped mineral wealth, which, despite the policy uncertainty caused by its young democracy, has managed to attract foreign investors.

By opening a Mongolian office that will expand to 80 over the course of this year, Rio also hopes to develop deeper roots in the country, where it is already conducting new research to find the "next Oyu Tolgoi."

The company is also in the midst of an underground expansion of a giant $ 5.3 billion copper and gold operation, which will allow it to produce 560,000 tonnes of copper per year, along with by-products of gold and silver.

“Mongolia is one of the most strategically important markets for Rio Tinto and we are here to stay,” Rio Tinto CEO Jean-Sebastian Jacques said in a statement.