The underground expansion of Oyu Tolgoi is Rio’s most important growth project.
In a statement released on social media, Oyu Tolgoi said: “We are aware of allegations involving procurement-related activities, and conducting a comprehensive internal investigation, and have sought cooperation of law enforcement authorities. As the investigation is ongoing, we are unable to provide further comment at this time.” The company did not disclose specific details about the individuals or transactions under review.
Rio Tinto owns 66% of Oyu Tolgoi LLC and is responsible for operating the underground mine, while the Mongolian government holds the remaining 34% stake. The Oyu Tolgoi site, located in the South Gobi Desert, is one of Rio Tinto’s most important assets and central to its long-term growth strategy. The company plans to develop the site into the world’s fourth-largest copper mine by 2030.
Production at Oyu Tolgoi has increased significantly, with output surging 78% in the most recent quarter. However, the mine’s development has faced a series of challenges over the years, including project delays, cost overruns, and political uncertainties that have affected its timeline and operations.
Copper plays a crucial role in Rio Tinto’s diversification strategy as the company seeks to reduce its dependence on iron ore and expand its exposure to the growing global copper market. The metal is essential for electrification and renewable energy technologies, with demand expected to increase sharply due to the global energy transition and the expansion of data centers.
Rio Tinto has been investing heavily in copper assets to align with the worldwide shift toward low-carbon technologies. Oyu Tolgoi is regarded as one of the most valuable copper deposits globally, and its successful expansion is considered vital to the company’s future production portfolio.
The ongoing internal investigation underscores Rio Tinto’s commitment to maintaining ethical standards and transparency in its operations. Both Rio Tinto and Oyu Tolgoi have stated their intention to cooperate fully with authorities to ensure that all procurement activities are conducted in accordance with corporate governance and compliance requirements.
Despite the current investigation, production at Oyu Tolgoi continues, and the company remains focused on achieving its long-term objectives in Mongolia. The project’s continued progress is seen as an important step toward meeting global copper demand and supporting sustainable energy development.
