Bloomberg reported that tensions between Mongolia’s government and Rio Tinto Group over the USD 6.6 billion Oyu Tolgoi mine have eased sufficiently to start shipping copper concentrate this week.

Mr Davaajav Gankhuyag mining minister of Mongolia said that “There is no significant problem with the Oyu Tolgoi mineral export contract. The first shipments will start on July 9th 2013.”

Scheduled shipments to Chinese smelters were postponed twice, first on June 14 at the request of Rio Tinto which owns 66% of the mine though its Turquoise Hill Resources Limited unit. Then on June 21 at the request of the government, which holds 34%.

Mr Oscar Mendoza managing partner at Mongolia Asset Management said that “It all depends on Rio. Maybe the government just wants to say the ball is in Oyu Tolgoi’s court.”

Oyu Tolgoi has produced more than 40,000 tonnes of copper concentrate. The stockpiled concentrate is to be delivered by truck 80 kilometers south to the border post at Gashuunsuukhait and then on to China.

Mr Dale Choi an Ulaanbaatar based independent analyst said that delays in shipments scheduled to start by the end of June is costing Mongolia USD 2 million in lost tax revenue every day. Every day of delay they are losing millions in lost investments because they are very cautious and they don’t want to be perceived as repeating past mistakes.”