Rio Tinto and Omnogovi: A Community Cooperation Agreement
This case examines the business decisions around managing the community impact of a mining development in the Gobi Desert region of Mongolia at Oyu Tolgoi-one of the larger copper and gold deposits in the world, and a flagship project of Rio Tinto. In 2009, a mining development agreement was reached with the Government of Mongolia on the national level, but negotiations were just ramping up at the local level. New legislation mandated the creation of a local-level agreement, but the exact requirements were vague, leaving a great deal of ambiguity about the obligations of the company. Hoping to establish its so-called social licence to operate, Rio Tinto committed to discussions with local authorities, but the many stakeholders involved have competing interests. Byambajav Dalaibuyan is affiliated with The University of Queensland - Centre for Social Responsibility and Mining. Sarah Lord Ferguson is affiliated with Simon Fraser University. Eric Werker is affiliated with Simon Fraser University.