1 SOLAR, EVS AND A BIG EXIT FROM COAL: 2024’S GOOD CLIMATE NEWS WWW.BLOOMBERG.COM PUBLISHED:2024/12/25      2 OVER 636,000 MONGOLIANS USE THE WHAT3WORDS APPLICATION WWW.MONTSAME.MN PUBLISHED:2024/12/25      3 CHINA EXPRESSES READINESS TO RESOLVE GASHUUNSUKHAIT-GANTSMOD CROSS-BORDER RAILWAY PROJECT ISSUES WWW.MONTSAME.MN PUBLISHED:2024/12/25      4 BOGD BANK AND FMO BEGIN COOPERATION TO SUPPORT SMES AND GREEN PROJECTS IN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2024/12/25      5 THE BANK OF MONGOLIA: LEGAL REFORMS NEEDED TO ENSURE CENTRAL BANK INDEPENDENCE WWW.GOGO.MN PUBLISHED:2024/12/25      6 SNOW COVERS OVER 60 PCT OF MONGOLIAN TERRITORY WWW.XINHUANET.COM PUBLISHED:2024/12/24      7 DIGITAL TRANSFORMATION AND DEVELOPMENT OF ARTIFICIAL INTELLIGENCE DISCUSSED WWW.MONTSAME.MN PUBLISHED:2024/12/24      8 MONGOLIAN AND JAPANESE AIRPORTS TO EXCHANGE BEST PRACTICES AND ENHANCE SERVICE QUALITY WWW.MONTSAME.MN PUBLISHED:2024/12/24      9 MONGOLIA'S SOVEREIGN WEALTH FUND RENAMED “CHINGGIS FUND” WWW.MONTSAME.MN PUBLISHED:2024/12/24      10 DEFENSE MINISTRY OF MONGOLIA TO SUPPLY MEAT TO VIETNAMESE ARMY WWW.AKIPRESS.COM PUBLISHED:2024/12/24      ЭХЯ: ДЦС-3-ЫГ 300 МВТ-ААР ӨРГӨТГӨХ ТӨСЛИЙН ӨРТӨГ 1.3 ТЭРБУМ ЕВРО БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/25     НҮҮРСНИЙ ЭКСПОРТЫГ 100 САЯ ТОННД ХҮРГЭХ ЗАМЫГ ЗАСАХ ГАШУУНСУХАЙТ-ГАНЦМОДЫН ХЭЛЭЛЦЭЭРИЙН ЭРГЭН ТОЙРОНД... WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/25     ХЭРЭГЛЭЭНИЙ БАРАА, ҮЙЛЧИЛГЭЭНИЙ ҮНЭ 8.1 ХУВИАР НЭМЭГДЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/25     ЗГ: "ОРАНО МАЙНИНГ" ХХК ЭХНИЙ САНХҮҮЖИЛТЭЭР 500 САЯ ДОЛЛАРЫГ ГАРГАНА WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/25     ОРОН СУУЦНЫ ҮНЭ 13 ХУВИАР НЭМЭГДЖЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/25     МОНГОЛБАНКНЫ ҮНЭТ ЦААСНЫ ҮЛДЭГДЭЛ ₮10.7 ИХ НАЯД БОЛЖ, ӨМНӨХ ОНЫ МӨН ҮЕЭС 21 ХУВИАР ӨСӨВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/24     БНХАУ-ЫН ЗАСГИЙН ГАЗАР ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙГ ОЛОН УЛСЫН ГЭРЭЭГЭЭР ШИЙДВЭРЛЭХЭД БЭЛЭН ГЭДГЭЭ ИЛЭРХИЙЛЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/24     НҮҮРСНИЙ ЭКСПОРТ 78.5 САЯ ТОННД ХҮРЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/24     "НЭГ УУТ БЭЛЭГ 36-72 ШИРХЭГ ЁОТОНТОЙ ТЭНЦЭХ САХАР АГУУЛДАГ" WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/24     НЭМЭЛТЭЭР ДАХИН ЗУРГААН ЧИГЛЭЛД ТУСГАЙ АВТОБУС ГАРГАНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/24    

Rio Tinto says climbing costs, resource nationalism once again big threats www.mining.com

World’s No.2 miner Rio Tinto (LON, ASX:RIO) said Tuesday that cost inflation driven by rising oil prices and a resurgence of resource nationalism are increasingly affecting mining companies’ investment decisions.

Speaking at the Bank of America Merrill Lynch conference in Miami, chief executive Jean Sebastien-Jacques said he remained optimistic about the medium to long-term global growth outlook. However, he mentioned volatility in markets, trade wars and governments efforts to get greater share of their mineral wealth — most times to the detriment of private companies — as growing concern for investors in the natural resources sector in the short-term.

Last year, Rio Tinto was responsible for half of the total cash returns across the mining sector.
“From the DRC and South Africa to Mongolia and Australia [resource nationalism] is gaining momentum,” he said, adding he was optimistic that common sense in all those cases would prevail.

Major miners operating in the Democratic Republic of Congo, Africa’s top copper producer and source of over 60% of the global cobalt supply, are vigorously fighting a new mining code. The fresh legislation strips away a stability clause protecting existing investments from changes to the fiscal and customs regime for 10 years, introduces a 50% windfall profits tax and gives powers to the mines minister to hike royalties on minerals considered “strategic”.

It all began in Indonesia, which imposed new rules on the exports of unprocessed ore early last year. Tanzania followed suit imposing two months later a ban on exports of gold concentrates. Something similar happened in South Africa, which last year unveiled a revised mining code that would have imposed a 1% tax on mining companies’ revenues – as opposed to their profits, as is common.

In Mongolia the government claims that Oyu Tolgoi, a copper joint venture run by Rio, owes $155 million in unpaid taxes. A claim the company denies.

Miners are also facing higher costs, Jacque said.“In this environment, asset quality really matters and operating capability is critical. Protecting margins and generating cash will be hard across the industry.”

Rio’s boss said that, despite the challenges, the industry should continue its efforts to keep costs and debt under control and so deliver better returns to shareholders.

“This is why we are actively shaping our portfolio to focus on the best assets…… in commodities with sound long-term fundamentals. This will further drive sector leading return on capital employed,” he said, adding that last year Rio Tinto was responsible for half of the total cash returns across the sector.



Published Date:2018-05-16