Turquoise Hill announced that Oyu Tolgoi lifted the force majeure notice to customers on March 1. Safe and normal mine operations, including underground development, have been maintained and no production impact is expected, the company said. Turquoise Hill said it expects any force majeure-related sales impact to be made up over the next few quarters.
On January 17, Oyu Tolgoi declared force majeure in connection to customer contracts for concentrate due to protestors using a large number of vehicles to obstruct the main access road within China at the Ganqimaodu Border Zone. The main border crossing for goods and supplies remained open. The placement of protestors’ vehicles prevented any traffic from safely traversing the border, both inbound and outbound.
On January 18, the blockade was lifted and the border reopened and on January 19, Oyu Tolgoi concentrate convoys recommenced crossing the border. Due to ongoing border congestion, a waiting period was required for border traffic to return to pre-blockade levels. In order to lift force majeure, a period of consistent convoy crossings was required reconfirming a stable concentrate supply chain.
