CERAWEEK Rio Tinto working to ensure access to Russian fuel for Mongolia project -exec

HOUSTON, March 9 (Reuters) – Rio Tinto Ltd (RIO.L)(RIO.AX) is working to keep up regular provides of gas and different items for its Mongolian copper operations from suppliers that purchase from Russia and elsewhere, a high govt on the mining big mentioned on Wednesday.

The Anglo-Australian firm is growing Mongolia’s Oyu Tolgoi, one of many world’s largest identified copper and gold deposits. Rio controls about two-third of the venture, with Ulanbaatar controlling the remaining.

Whereas Rio has start on the lookout for different gas sources for Oyu Tolgoi, the corporate doesn’t consider it may cease shopping for from Russia altogether, Daring Baatar, head of Rio’s copper enterprise, mentioned on the sidelines of the CERAWeek vitality convention in Houston. Rio has provide agreements for a number of merchandise with Mongolian suppliers, a lot of whom procure supplies from Russia.

“The fact is, Mongolia has two very large highly effective neighbors, so it is fairly vital for us to keep up wholesome, peaceable, balanced relationships,” Baatar mentioned of his residence nation.

Mongolia is bordered on the north by Russia and on the south and east by China, leaving Rio few choices to safe provides for the venture, which is ready to be the world’s third-largest copper mine.

Amid Russia’s invasion of Ukraine, a number of firms and international locations have introduced they’ll cease enterprise in Russia and shopping for Russian merchandise.

Baatar mentioned it will be “very tough” for Rio’s Mongolian operations to cease all imports from Russia, including that some provides come via Russia by way of Kazakhstan.

“That type of provide is okay except the world desires to utterly shut the Russian borders, which isn’t potential,” he mentioned.

Rio in January ended a long-running feud with Mongolia’s authorities over management of Oyu Tolgoi. The deal marked a constructive growth for the corporate, which is going through main pushback for initiatives in Serbia, the USA and Guinea.

Baatar appeared on a copper panel on the convention alongside Richard Adkerson, chief govt of Freeport-McMoRan Inc (FCX.N) and Trafigura’s (TRAFGF.UL) Julien Rolland.

Baatar instructed the panel that it was “fairly crucial” for the USA to develop extra copper mines to produce copper wanted for electrical automobiles and renewable vitality applied sciences. Rio is attempting to develop the Decision Copper venture in Arizona, however has confronted Native American opposition.

Mining firms “ought to respect the desires of communities, and plenty of communities do not need to see mining,” Baatar mentioned.

When requested what that meant for the Arizona venture, Baatar mentioned he believes an settlement could be reached with native Native Individuals.

“I utterly respect their views of the venture and I am actually hopeful we are able to discover a mutual, widespread answer,” he mentioned.

Reporting by Ernest Scheyder
Modifying by Marguerita Choy

Our Requirements: The Thomson Reuters Belief Ideas.