ePaper

Wednesday, June 20, 2018

Miners take hunt to Mongolian dunes

  • Print

When temperatures rise and winds drop in the coming weeks, a band of explorers will hunt for copper riches in Mongolia's Gobi Desert. For years Rio Tinto has been the sole international copper mine operator in Mongolia, bound closely to a country where it has bet billions of dollars on the giant Oyu Tolgoi project.

Others have steered clear due to the risks of operating in a nation with an unpredictable and young democracy and judiciary, a frail economy and extreme weather. Now rising global demand for a metal used in electric cars and renewable energy, at a time of increased costs and depleted deposits in the world's biggest copper producer Chile, is driving miners to riskier locations.

Some are looking to Mongolia. Geologists say deposits like Oyu Tolgoi - meaning Turquoise Hill because of the staining of the rocks by oxidized copper - rarely occur in isolation. That means, for some miners, the chances of finding another make the east Asian nation worth a calculated gamble, especially given its proximity to the world's biggest copper consumer, China.

The new charge is led by a group of about half a dozen smaller players, including Australia's Xanadu Mines, Canada's Kincora Copper and US company Wood Capital Partners, which have higher risk appetites and are seeking to steal a march on competitors. Wood Capital Partners, set up by two former Citigroup bankers and specialized in acquiring distressed assets.

-Reuters, London

More News For this Category

China slams US as Trump issues new trade threat

| By
US President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods and Beijing warned it would retaliate, in a rapid escalation of
China slams US as Trump issues new trade threat

US oil companies, producers seek relief from steel tariffs

| By
Major US energy companies including Plains All American Pipeline, Hess Corp and Kinder Morgan Inc are among many seeking exemptions from steel-import tariffs as the United States ratchets
US oil companies, producers seek relief from steel tariffs

Trade war worries slam China and emerging markets

| By
Chinese stocks fell almost 4 percent and alarm bells rang across global markets on Tuesday, as the trade dispute between the United States and China escalated further.
Trade war worries slam China and emerging markets

OPEC sees strong oil market

| By
Global oil demand is set to stay strong in the second half of 2018, an OPEC technical panel forecast this week, suggesting the market could absorb extra production
OPEC sees strong oil market

Apple fined millions for Australia false iPhone claims

| By
Apple was Tuesday fined Aus$9 million (US$6.7 million) by an Australian court for making false claims about consumer rights when refusing to fix faulty iPhones and iPads previously
Apple fined millions for Australia false iPhone claims

Beijing will 'fight back firmly' if US publishes additional tariffs

| By
China will fight back firmly with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods, the commerce ministry said, accusing
Beijing will 'fight back firmly' if US publishes additional tariffs

Asian, European stocks plunge as China-US trade war fears brew

| By
Hong Kong and Shanghai stocks led a sell-off across Asian and European markets Tuesday on rising trade war fears after Donald Trump threatened fresh tariffs on Chinese imports

UPS to spend $130m on new natural gas vehicles

| By
Package delivery company UPS on Tuesday said it will invest $130 million to buy 730 compressed natural gas vehicles and build five more domestic CNG fueling stations as

ZTE shares tank after US Senate puts Trump reprieve in doubt

| By
Shares of ZTE Corp plummeted on Tuesday after the US Senate's passage of a defense bill set up a potential battle with the White House over whether the

VW names interim Audi boss

| By
Volkswagen suspended Audi boss Rupert Stadler and announced an interim replacement on Tuesday, seeking to steady its most profitable business after German authorities arrested Stadler as part of

© 2018 The Asian Age