PERTH (miningweekly.com) – Mining major Rio Tinto has called for less interference at the Oyu Tolgoi copper and gold mine, in Mongolia, as it advances underground development.

Rio copper and diamonds CEO Arnaud Soirat told delegates at the Mongolian Economic Forum that the Oyu Tolgoi development would be used as a benchmark for future investment in Mongolia.

“There is no doubt Oyu Tolgoi Underground is a complex and difficult project and it will require Rio Tinto’s balance sheet and technological competence to succeed. We are confident we can pull it off, but we do need your trust, patience and support, please let us get on with the work of continuing to build a world-class business,” Soirat said.

Soirat pointed out that Rio’s strategic partnership with Mongolia was formalised in 2009, and has seen project shareholders invest more than $7.5-billion into Mongolia, with a further $5.5-billion committed.

“By the end of the underground development we could have invested $12-billion. To put that into context, that’s more than Mongolia’s entire annual gross domestic product,” Soirat added.

The mine is currently one of Mongolia’s top corporate tax payers, paying some $1.7-billion in taxes and royalties since 2010, and one of the largest employers in the mining sector, with 14 000 staff employed at the mine.

However, early this year,  Mongolia slapped Rio Tinto with a $155-million tax bill and Parliament has set up a group to review agreements that underpin the development of the mine.

Soirat said that Rio Tinto had committed about $1-billion investment in the country per year for underground development and more to come.

“We are pioneering a Made in Mongolia strategy, aiming to bring more value in the supply chain into Mongolia and Mongolian supplier community and bringing new technology and capacity to Mongolia.

“This impact may continue to expand if we work together to successfully deliver Oyu Tolgoi’s underground. It is critical that all project partners work towards this objective – as it is the only way shareholders will receive a return,” Soirat said.

The Oyu Tolgoi openpit operation has been in production since 2013, and the project partners are currently working on an underground mine development, which is expected to cost some $4.4-billion.