Rio Tinto Group's subsidiary, Oyu Tolgoi LLC, has launched a comprehensive internal investigation into serious allegations of corruption and unethical conduct at its crucial copper-gold operations in Mongolia.
Oyu Tolgoi LLC, the operating company of the massive copper-gold deposit in Mongolia, has confirmed it is undertaking a comprehensive internal investigation into allegations of misconduct. The investigation is focused on procurement-related activities within the operation, a sensitive area often vulnerable to corruption in large-scale resource projects.
The allegations have surfaced despite Oyu Tolgoi's previous affirmations of its transparent procurement processes and a strong compliance framework, including regular internal and external audits. However, the company, which is 66% owned and operated by Rio Tinto with the remainder held by the Mongolian government, has taken the significant step of enlisting the aid of law enforcement authorities to assist with the ongoing inquiry.
In a statement released on social media, Oyu Tolgoi LLC confirmed its awareness of the issue: “We are aware of allegations involving procurement-related activities, and conducting a comprehensive internal investigation, and have sought cooperation of law enforcement authorities.” The company has declined to provide further comment at this stage, citing the ongoing nature of the investigation.
The Oyu Tolgoi mine, particularly its underground expansion, is Rio Tinto's most important growth project and a cornerstone of its long-term strategy.8 The global miner is working to reduce its traditional reliance on iron ore by boosting its exposure to copper, a metal critical for the energy transition—including electric vehicles, renewable energy infrastructure, and data centers—where demand is expected to soar.
The underground operation is expected to propel Oyu Tolgoi to become the world’s fourth-largest copper mine by 2030. Production has already been robust, with output soaring by 78% over the last quarter, signaling the project's massive potential.
Despite its strategic importance, the development of Oyu Tolgoi has been repeatedly marred by year's of political turbulence, cost overruns, and delays. The corruption inquiry adds a new layer of complexity to the operation's already checkered history, which has included multi-year tax disputes with the Mongolian government and a recent $138.75 million settlement in a US class-action lawsuit over alleged disclosure failures related to the mine's expansion.
The launch of an official internal probe, particularly one involving law enforcement, places renewed scrutiny on Rio Tinto's corporate governance standards and its management of risk in complex international jurisdictions. Mining industry best practices for large-scale procurement, involving billions of dollars in contracts for equipment and services, typically require rigorous oversight to prevent misconduct.
