Turquoise Hill has declared force majeure at one of the world’s largest copper-gold mines, Oyu Tolgoi in Mongolia, following a protest by Chinese coal transporters in the area of the Ganqimaodu Border Zone. On January 8, protestors used a large number of vehicles to obstruct the main access road within China to the Chinese-Mongolian border. This has prevented any traffic from safely crossing the border. While the obstruction remains in place, Oyu Tolgoi convoys are unable to cross through the Chinese-Mongolian border to deliver concentrates to customers, the company said.
Oyu Tolgoi said it is actively monitoring the situation and engaging with relevant government authorities.
Safe and normal mine operations, including underground development, have been maintained and no production impact is expected at the copper-gold mine, the company said.
Earlier this week, the company was hit with a large tax bill from the Mongolian government. Oyu Tolgoi received a tax assessment of US$155 million from the Mongolian Tax Authority relating to an audit on taxes imposed between 2013 and 2015. Turquoise Hill said Oyu Tolgoi has paid all taxes and charges required under the Investment Agreement and Mongolian law.