Rio Tinto Delays First Production From Oyu Tolgoi Copper Mine in Mongolia

Australian mining giant Rio Tinto Group(RIO)on Friday announced it is delaying first production for the Oyu Tolgoi copper mine in Mongolia by three months to January 2023. $RIO is developing the mine with Canada’s Turquoise Hill Resources (TRQ.TO) in a joint venture.

Australian mining giant Rio Tinto Group(RIO)on Friday announced it is delaying first production for the Oyu Tolgoi copper mine in Mongolia by three months to January 2023. $RIO is developing the mine with Canada’s Turquoise Hill Resources (TRQ.TO) in a joint venture.

Oyu Tolgoi Copper Underground 

Turquoise Hill Resources on Thursday estimated additional funding required for the project had ballooned to $3.6 billion.

The delays to the development of what will be the world’s fourth largest copper mine has not sat well with the Mongolian government as they maintain a 34% stake pn the mine. The delays have also triggered the funding spat between Rio and Turquoise Hill.

South Gobi, Mongolia

Oyu Tolgoi, in the South Gobi region of Mongolia, is one of the largest known copper and gold deposits in the world.  Rio describes it as one of the most modern, safe and sustainable operations in the world. When the underground is complete, it will be the world’s fourth largest copper mine. At peak production, Oyu Tolgoi is expected to produce 480,000 tonnes of copper per year on average, from 2028 to 2036, from the open pit and underground. By 2030 is expected to be the fourth largest copper mine in the world.

Open pit mining began at Oyu Tolgoi in 2011 and the copper concentrator, the largest industrial complex ever built in Mongolia, began processing mined ore into copper concentrate in 2013. Current infrastructure at Oyu Tolgoi will allow the mine to operate for decades to come.

Oyu Tolgoi is jointly owned by the government of Mongolia, which has 34% ownership, and Turquoise Hill Resources, which owns 66%. Rio Tinto owns 50.8% of Turquoise Hill Resources and manages the operation on behalf of the owners.

Source: Rio Tinto

The TradersCommunity News Desk

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