Mongolia won’t receive mine dividend for ten years

Oyundelger 2016-10-10 06:10

Mining

Mongolia won’t receive mine dividend for ten years.

Mongolia won’t receive mine dividend for ten years. Rio Tinto Group said Mongolia won’t receive any dividend from the Oyu Tolgoi mine for ten years as the world’s second-biggest mining company prioritizes completing a $5.3-billion underground expansion. Oyu Tolgoi, which at its peak will be one of the top five copper mines in the world, is partly owned by the Mongolian government and Turquoise Hill Resources , which is majority controlled by Rio. In the past, Rio has said the project, the biggest in Mongolia’s mining history, could account for about one-third of the gross domestic product. Rio reported net earnings of $53-million from Oyu Tolgoi in the first half of this year. Construction of the underground expansion is “well underway” and about 1 600 people are working on the project. Staffing is expected to reach 2 400 by year-end. Following the change of power, the government recently ousted three board members at the State-owned mining company that helped steer Oyu Tolgoi out of the long-standing dispute between Rio and the government. The mine is expected to be in operation for more than 75 years. Turquoise Hill Resources owns 66% of the Oyu Tolgoi deposit. Mongolia’s State-owned Erdenes Oyu Tolgoi holds the share of the mine not owned by Turquoise Hill.