Rio Tinto mulling construction of new power plant in Mongolia
Rio Tinto said it was considering building a new power plant with partners in Mongolia for the Oyu Tolgoi mining project.
Rio Tinto said it was considering building a new power plant with partners in Mongolia for the world-class Oyu Tolgoi mining project, following a government decision to cancel an agreement to build a power facility itself. According to Rio Tinto, the government's decision to terminate the Southern Region Power Sector Cooperation Agreement indicated it no longer viewed the Tavan Tolgoi power project as a viable option for Oyu Tolgoi. As a result, and in line with the terms of the 2009 investment agreement, Oyu Tolgoi is now obliged to deliver a domestic power source for the operation within four years. The cost and means of financing construction of a new power plant would be finalized between shareholders. Rio Tinto said it would continue to review its capital expenditure forecasts for the project, but had already earmarked $250m a year for the development of a power station in Mongolia in its 2019 and 2020 capital expenditure forecasts.
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