Oyu Tolgoi expansion to be set
Oyu Tolgoi expansion is to be set.
Oyu Tolgoi expansion is to be set. Rio Tinto appears set to approve the long-awaited $US4 billion expansion of the Oyu Tolgoi copper and gold mine in Mongolia, as early as next week in a move analysts say could add $US4.7bn of value to the company and pave the way for further expansion. In December, Rio said the disagreement had been settled, paving the way for project financing deals and the coming approval of the expansion, which is designed to unlock the up to 80 per cent of the value of the project that cannot be accessed by the open pit mine. The latest cost estimate for the underground expansion issued by Rio was $US4.9bn in October 2014. In its March quarter report, released past week, Rio said the board was expected to make an investment decision on the Oyu Tolgoi underground this quarter, which is a good indication management thinks the project is set to go ahead. At full production, Oyu Tolgoi is expected to produce about 700,000 tons of copper and 500,000 ounces of gold a year at a cost of US70c a pound (net of gold credits). Oyu Tolgoi LLC is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013.
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