Report: Rio Tinto is doing everything it can to prevent another strike at the Mongolian mine – Rio Tinto (NYSE:RIO)

Rio Tinto Group RIO is reportedly in negotiations with workers at its Oyu Tolgoi copper plant in Mongolia to prevent further industrial action.

The move followed a previous strike in May that was triggered by a significant wage cut, Reuters reported.

In particular, changes in Mongolian labor law, which will come into force at the beginning of 2022, led Rio Tinto to recalculate employee allowances.

According to the non-governmental organization OT Watch, which is in contact with the miners, wage cuts of up to 80 percent have occurred.

OT Watch director Sukhgerel Dugersuren told Reuters: “A request to start negotiations has been sent and OT must respond by July 5, 2024. Another strike is possible if 70 percent of the main wage demands and 50 percent of the other demands are not met.”

“The workers’ main demand is to raise wages to a similar level to that paid for the same type of work in other Rio Tinto mines.”

He added that workers were paid “a paltry $1,596 a month for their work far from home.” According to government figures, the average monthly wage for an Australian miner is A$10,413 ($6,919), the report highlighted.

According to OT Watch, all open pit and underground mining operations were halted during the strike from May 10 to 17. Workers reported that this shutdown may have caused some structural problems underground.

Rio Tinto commented: “The shutdown had no impact on mine operations and there was no material impact on mine production.”

Read also: Rio Tinto invests $143 million in research and development of low-emission steel

In March last year, Rio Tinto began underground mining at Oyu Tolgoi, increasing its production to about 500,000 tonnes of copper per year from 2028.

Last month, Rio Tinto said Serbia was close to approving the development of Europe’s largest lithium mine. The Jadar project, which was put on hold in 2022, could start production in 2028, supplying Europe with the metal much needed for its electric vehicle (EV) industry.

Investors can participate in the share via VanEck Steel ETF SLX And NEOS ETF Trust Mast Global Battery Recycling & Production ETF EV.

Price promotion: RIO shares closed 0.73% higher at $66.41 on Monday.

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

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