Friday, January 4, 2013

The Big Dig: Destroying Mongolia's environment?


Mongolia is opening one of the world's biggest copper mines, the Oyu Tolgoi. 

The project is due to start operations in the next few months and this mine alone will account for 30 percent of Mongolia's entire GDP.
But the Oyu Tolgoi deal between the government and the Australian company Rio Tinto is highly controversial. The government gets just 34 percent, raising suspicions about how much the nation's interests are being protected. 

Rio Tinto is also exempt from a windfall profits tax. 

And critics say the government is inexperienced in striking deals with foreign mining giants.

For those living around the site, their concerns are more immediate. Located in the South Gobi desert, water is a precious commodity and a source of life for the nomadic herdsmen. 





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