Ernest Scheyder

HOUSTON, Reuters – Rio Tinto Ltd (NYSE:) Ltd is trying to keep steady relations with Russia in order to supply fuel for its Mongolian operations. This was a statement by a senior executive of the mining company.

Anglo-Australian companies are developing Mongolia’s Oyu Tolgoi. It is one of the most important known deposits of copper and gold in the world. Rio owns about half of the project and Ulanbaatar the other third.

Rio may have begun to look for other fuel sources for Oyu Tolgoi but Bold Baatar of Rio’s Copper business said that it does not think the company can quit buying from Russia. Bold Baatar was speaking on the sidelines at the CERAWeek Energy conference in Houston.

Baatar spoke out about his homeland, saying that “Mongolia has two very powerful neighbours”.

Mongolia’s borders are bounded on the North by Russia, and the South and East by China. Rio has few other options for securing supplies to this project. The Mongolian copper mine is the third-largest in the world.

Numerous countries and businesses have made it clear that, in the wake of Russia’s incursion into Ukraine, they will no longer do business or purchase Russian goods.

Baatar claimed it would prove difficult for Rio’s Mongolian operations, which are trying to stop Russian imports. Baatar also stated that Kazakhstan receives some supplies through Russia.

He said, “This kind of supply works unless Russia wants the entire world to close its borders.”

Rio, in January, ended a decades-old feud between the Mongolian government and Rio over Oyu Tolgoi. It was a good development for the company that is currently facing opposition for major projects in Serbia, the United States, and Guinea.

Baatar joined Richard Adkerson as chief executive at Freeport-McMoRan Inc (NYSE:) Inc, and Trafigura’s Julien Rolland to make a copper panel.

Baatar said to the panel it was imperative that the United States develop more copper mines for supply of copper required for electric cars and other renewable energy technologies. Rio has been unsuccessful in developing the Resolution Copper Project in Arizona. Native American resistance is a problem.

Baatar said that mining companies must respect community wishes. Many communities do not want to see any form of mining.

Baatar answered when asked about the implications of that for Arizona’s project. He said that he believed an agreement could be reached with Native Americans.

He said, “I fully respect their view of the project. I am really optimistic we can reach a mutually beneficial solution.”