Mongolian MP goes on hunger strike over Oyu Tolgoi mine controversy

Mongolian MP goes on hunger strike over Oyu Tolgoi mine controversy
Lawmaker Ganbaatar holding a sign that reads: "Going on hunger strike for the minority who have lost Oyu Tolgoi."
By Anand Tumurtogoo in Ulaanbaatar January 27, 2021

Mongolian MP Ganbaatar Sainkhuu went on hunger strike on January 26 with the demand that the government take the matter of the Oyu Tolgoi copper-gold mine project to the international courts. He was rushed to hospital later in the day, but by early on January 27 was released and resumed his hunger protest.

Ganbaatar is demanding swift action from ministers to pressure Rio Tinto to revise the 2009 investment agreement underpinning the project and terminate the recently devised Oyu Tolgoi financing plan.

Ganbaatar told reporters: “Rio Tinto has falsely promised the Mongolian people riches and we are left with the debt until they finish mining in 2050.”

Acting Minister of Justice and Home Affairs, Nyambaatar Khishgee, spoke with Ganbaatar outside the government palace. He said: “Actions are being taken in phases to conduct an independent review and determine the legal framework to terminate the agreement between Rio Tinto and the government of Mongolia.”

Prior to Ganbaatar’s hunger strike, as the new year got under way the government showed clear dissatisfaction with the miner's plans to achieve production from Oyu Tolgoi for development capital of $6.7bn. The costs of the mine expansion are proposed at around $1.5bn more than the original estimate.  

Since the announcement of the extra costs, minority shareholders of Turquoise Hill Resources (TRQ), a subsidiary of Rio Tinto and owner of 66% of Oyu Tolgoi, have been pushing back against Rio Tinto’s  revised financing plans.

Analysts have warned that the looming renegotiations between the government and the miner for the already deferred project could cause further delays to realising it. And with the resignation last week of Mongolia’s government after a coronavirus care scandal, more delays have become certain.

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