Rio Tinto is doubling down in Mongolia, where its operations have been hit with a triple whammy of complications in the past fortnight.

Chief executive Jean-Sebastien Jacques has travelled to the country and out into the Gobi Desert to reaffirm that Rio is there to stay despite the recent unrelated setbacks.

Rio said it was opening a new office in the capital Ulaanbaatar and expanding its Mongolian workforce to about 80 people.

The company said the expansion and Mr Jacques' visit were planned before the Mongolian government handed its giant Oyu Tolgoi copper and gold mine a $US155 million ($195 million) tax bill.

Mr Jacques was at the underground mine, in the Gobi Desert about 550 kilometres south of Ulaanbaatar, on Sunday.

Oyu Tolgoi was prevented from delivering copper to its customers late last week because of a border road block related to tensions between Mongolia and China.

The border, about 80 kilometres from the mine, reopened at the weekend but it is too soon to declare its operation back to normal given the threat of more protest blockades over new tariffs on Mongolian goods entering China.

The third incident involving Oyu Tolgoi involved a raid by Mongolian immigration officers that led to dozens of overseas workers, including Australians, being kicked out of the country over visa issues.

'We are here to stay'
Rio said those caught up in the visa issues were employed by contractors and not members of its staff.

The raid was part of a widespread crackdown on overseas workers in Mongolia targeting a number of businesses.

Rio's Canadian-listed subsidiary, Turquoise Hill Resources, which owns 66 per cent of the project with the remainder in the hands of the Mongolian government, said last week that it had paid all taxes and charges required under the investment agreement and Mongolian law.

"Mongolia is one of Rio Tinto's most strategically important markets and we are here to stay," Mr Jacques said in a statement to coincide with his visit.

"We have invested more than $7 billion in Mongolia since 2010, including salaries, supplier payments, investment in the community, and $1.5 billion in taxes, royalties and other payments to the government of Mongolia.

"Today we are demonstrating the deepening of our commitment to Mongolia through the establishment of a new country office under new Mongolian leadership to support our exploration, global technology services efforts and relationships in country."

The new office will support Rio's exploration program and technology centre. It will also focus on building stronger relationships with partners in Mongolia.

Munkhtushig Dul, a veteran of the public service and former Noble Group executive in Mongolia, will lead the new office and have responsibility for Rio's day-to-day operations in the country.

The new office will operate separately from the Oyu Tolgoi team led by managing director Armando Torres.

Published Date:2018-01-22