By Robb M. Stewart
MELBOURNE--An Australian lawyer working for a mining company in
Mongolia has been stopped from leaving the country as authorities
probe a case of alleged corruption, her employer, Rio Tinto PLC
(RIO) controlled SouthGobi Resources Ltd. (SGQ.T) said
Wednesday.
Neither Sarah Armstrong or SouthGobi has been charged and the
company continues to cooperate with an ongoing investigation by
Mongolia's Independent Authority Against Corruption, SouthGobi
spokesman Dave Bartel said in an emailed reply to questions.
The IAAC has been questioning Ms. Armstrong, who was prevented
from departing the capital Ulan Bator for Hong Kong but remains
free to travel within Mongolia, Mr. Bartel said. He said she is
"stressed and concerned, as would be expected."
Ms. Armstrong is the only employee of SouthGobi to be affected
by an international travel ban, he said.
Foreign Affairs Minister Bob Carr told the Australian
Broadcasting Corp. Ms. Armstrong hadn't been arrested and her
passport hadn't been taken. Australia's consul-general in the
country, Dave Lawson, has met with Ms. Armstrong and will accompany
her to a meeting with authorities, he said.
"The authorities in Ulan Bator are seeking to interview her
further--not, I'm advised, about any allegations against her, but
about a complex matter between the company she works for, the
resources authority of Mongolia and the Mongolia anti-corruption
authority," Mr. Carr said in the radio interview.
The travel ban comes amid growing investor concern over the
investment environment in Mongolia, a resource-rich country on
China's border.
Rio Tinto and majority-owned Turquoise Hill Ltd. (TRQ.T) last
week rejected a request from Mongolia's government to renegotiate
the investment agreement for the massive Oyu Tolgoi copper and gold
mining development in the country's south.
Oyu Tolgoi is 66% owned by Turquoise Hill, with the remainder
owned by Mongolia's government. The companies have already invested
almost US$6 billion in the project, which is expected to begin
commercial production next year.
Plans by Aluminium Corp. of China Ltd., or Chalco, to take a
controlling stake in SouthGobi collapsed in August in the face of
opposition from the Mongolian government. SouthGobi, whose flagship
Ovoot Tolgoi mine is selling coal to customers in China, is
majority owned by Turquoise Hill.
A spokeswoman for Rio Tinto declined to comment on Ms.
Armstrong's travel ban.
Write to Robb M. Stewart at robb.stewart@wsj.com
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