Protesters blocked copper exports from a huge Rio Tinto mine in Mongolia on Wednesday, partially cutting off the supply of a mineral vital to China’s renewable energy ambitions.
The protest group, called the Radical Reform Movement, is pushing for a greater share of mining revenue for Mongolians, a long-running demand in a nation where poverty persists despite the exploitation of its mineral riches. Copper is needed for electric vehicles and solar and wind power installations, all industries where China is a world leader.
It wasn't clear if the protest was a one-day affair aimed at drawing attention to the issue or the start of a prolonged standoff that could have a deeper economic impact in both countries.
Videos posted on Facebook by the Radical Reform Movement showed a small group of protesters milling around a barrier set up on a two-lane road running through a barren landscape on a bright sunny day. A white banner that said “Stop Rio Tinto” in red letters was draped on a large tree branch across the road in front of the tire wall.
The Oyu Tolgoi mine is a massive undertaking to tap a vast reserve of copper deep in the Gobi Desert. About 80 kilometers (50 miles) north of the border with China, it also has large gold deposits and is expected to be the fourth largest copper mine in the world when fully operational, Rio Tinto has said. The British-Australian mining giant owns 66% of the mine, with the Mongolian government holding the other 34%.
The jointly owned mining company said shipments of copper concentrate were halted after the road was blocked on Wednesday morning. It said the Oyu Tolgoi mine contributes about 9% of Mongolia's tax revenues and warned that a weeklong blockage could cost the government 35 billion Mongolian Tugrik ($13.3 million).
At a Cabinet meeting, Mongolian Prime Minister Uchral Nyam-Osor told the justice and internal affairs minister to enforce the law and hold accountable those who unlawfully obstruct or interfere with business operations being conducted in accordance with the law and regulations, according to the a government Facebook page.
The Radical Reform Movement has called for the expulsion of foreign investors. While others wouldn't go that far, there are voices in the government calling for the renegotiation of the agreement with Rio Tinto to give the country a larger share of the benefits.
