Rio Tinto’s New Mongolian Mine Might Not Come to Fruition

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Rio Tinto’s $5 billion Oyu Tolgoi copper and gold mine expansion in Mon­golia, is looking increasingly uncertain, the Australian reported, with a recent tax dispute headed towards arbitration and adding to a long list of disagreements that have halted the ­project.

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Continued delays and increasing arguments with Mongolia led Rio’s chief financial officer Chris Lynch to say this week the project may not go ahead at all. And mine operator and Rio subsidiary Turquoise Hill has had to defend itself against investor concerns that the mine may not be a going concern because of uncertainties around the expansion.

Rising 0.9 percent to close at $2,051 per metric ton, the 3-month price of aluminum experienced the biggest change on the LME for Wednesday, August 13. At INR 126.35 ($2.06), the Indian aluminum cash price finished the market day up 0.6 percent per kilogram. On the LME, the primary aluminum cash price gained 0.5 percent to finish at $2,040 per metric ton.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap remained essentially flat at CNY 12,250 ($1,989) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,207) per metric ton for the fifth day in a row. The price of Chinese aluminum bar was unchanged at CNY 14,200 ($2,306) per metric ton. For the fifth day in a row, the cash price of Chinese aluminum remained essentially flat at CNY 13,960 ($2,267) per metric ton.

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