Oyu Tolgoi copper exports to China drop 70% amid border restrictions

Oyu Tolgoi LLC, the operator of one of the world’s largest copper mines, reports that copper concentrate exports to China have decreased by approximately 70% over the last two weeks. The decline is attributed to restrictions at China’s Ganqimaodu Border Port, which is adjacent to Mongolia’s Gashuunsukhait Border Port.

Daily truck convoys transporting the concentrate have fallen from a typical 13–15 per day to only three or four. This disruption represents a current decline of about $300 million compared to normal operations. If the restrictions persist through the end of the year, potential lost export revenue could reach $1.2 billion.

Mongolian border officials stated the slowdown is due to infrastructure and technology upgrades at the Chinese port, including the recent introduction of an in-vehicle facial recognition system for truck drivers. While these upgrades were initially expected to conclude in late September, the Chinese embassy in Ulaanbaatar has indicated they may continue until the end of December. Mongolian Finance Minister Mendsaikhan Zagdjav noted that cabinet ministers have been instructed to visit the border to meet with Chinese authorities.