Seeking Alpha: Mongolia a Big Boost for Rio Tinto

New sources of minerals close to expanding industry are critical to future mining industry profits. Rio Tinto (RIO) is tapping a major source of copper adjacent to the world’s top market for that metal: China. Rio Tinto is almost ready to start mining copper and gold in Mongolia. Production of ore at the Oyu Tolgoi copper mine in the central Asian nation is supposed to begin in August, which is six months ahead of schedule, a Rio Tinto executive told Reuters. The shipment of ore to customers in China is supposed to begin next year. A successful launch of Oyu Tolgoi could give Rio Tinto’s profits and stock value a huge boost because the mine is located right on the Chinese/Mongolian border. China is the world’s largest market for copper. Rio Tinto would be in a position to ship copper straight to Chinese customers by rail so it would have lower transportation costs. This could ensure lower prices and a steadier supply because it would not have to ship the ore via sea. To read the full article, click hereMongolia a Big Boost for Rio Tinto

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