Rio launches corruption probe at Oyu Tolgoi
Oyu Tolgoi LLC, 66% owned by Rio Tinto (ASX: RIO), has sought support from law enforcement for an internal investigation into allegations of corruption and unethical conduct at the copper operations in Mongolia.
Olyu Tolgoi LLC confirmed an investigation is underway, reaffirming the company’s strict zero-tolerance policy toward corruption and unethical conduct.
Rio Tinto declined to comment.
“We are aware of allegations involving procurement-related activities and conducting a comprehensive internal investigation and have sought cooperation of law enforcement authorities,” Oyu Tolgoi LLC said in a statement.
“As investigation is ongoing, we are unable to provide further comment at this time.”
The investigation is not the first challenge Rio has faced at its Mongolian copper operations.
Earlier this year, Rio Tinto offered the Mongolian Government, the owner of the remaining 34% stake in Oyu Tolgoi, $472m [US$295m] to resolve a long running tax dispute.
The Mongolian Government also lodged a claim of corruption against Rio Tinto to the British High Court in May. The claim was ultimately dismissed.
In June, the company agreed to pay $212m [US$138.75m] to settle a lawsuit that accused Rio of defrauding investors for not disclosing problems with the $7b expansion of the Oyu Tolgoi mine from 2018-2019, as reported by Reuters.
Despite these legal issues, production at Oyu Tolgoi rose 78% in Q3 CY25 following the approval of development work for an alternative mine plan at the site.
Production is expected to continue to grow to a peak of 500,000tpa between 2028 and 2036.
Rio Tinto copper chief executive Katie Jackson says Oyu Tolgoi continues to ramp-up as planned, with the cave performing above expectations.
“Our understanding of the ore body is growing as production and development progresses, further increasing our confidence and flexibility.”
On Friday, Rio Tinto board director Martina Merz officially stepped down from her role citing a wish to dedicate more of her time to building innovation ecosystems.
This follows the company’s recent corporate governance strategy restructuring shift that saw the board downsize from its original 14-member structure.