January 26, 2022

Rio Tinto has forgiven the $2.4 billion debt the Mongolian government owes the company for their joint venture Oyu Tolgoi copper mining project that would make it the world’s fourth-largest copper mine once the expansion is complete. This debt forgiveness paves the way for underground production to begin in 2023. An immediate effect on prices is unlikely. Rio Tinto CEO Jakob Stausholm recently stated that this debt forgiveness restores the company’s relationship with the government. Last year open-pit production of the mine was 149,200 mt, of which 50,200 mt was Rio Tinto’s share. Many market analysts point to long-term problems with copper supply as demand for the metal is expected to rise with increased electric vehicle production. (1/26/2022)

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