Oyu Tolgoi Copper Exports to China Drop 70 Percent
Oyu Tolgoi LLC reports a 70 percent drop in copper exports to China due to border port infrastructure and technology upgrades.
Copper concentrate exports from Oyu Tolgoi LLC to China fell 70 percent over a two-week period following restrictions at the Ganqimaodu Border Port. Daily truck convoys decreased from 12-13 to approximately four, resulting in an estimated revenue loss of $300 million. Projections suggest losses could reach $1.2 billion by year-end if the disruptions continue.
Mongolian border officials attribute the slowdown to infrastructure and technology upgrades at the Chinese port, specifically the installation and maintenance of an in-vehicle facial recognition system for drivers. Although the work was scheduled to conclude in September, the Chinese embassy in Ulaanbaatar informed the Mongolian government that the process may extend through December. These restrictions have also hindered coal exports through the Gashuunsukhait Border Port.
Finance Minister Mendsaikhan Zagdjav has instructed ministers to meet with Chinese authorities to resolve the issue. Minister of Road and Transport Delgersaikhan Borkhuu stated there are no known political reasons for the disruptions.
