Canadian Mining Journal


Mongolia threatens to revoke Rio Tinto’s plan for Oyu Tolgoi

The government of Mongolia may cancel and replace the development and financial plan for the country’s vast Oyu Tolgoi copper-gold mine, Turquoise Hill Resources (TSX: TRQ; NYSE: TRQ) said today.

The company, which is controlled by Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO), said Mongolian authorities are dissatisfied with its plans and are particularly concerned about the costs of the expansion, recently updated to US$6.75 billion, about US$1.5 billion higher than its original estimate.

In 2019 Rio Tinto  flagged stability risks associated with the original project design, which translated into as much as an additional US$1.9 billion cost and a 30-month delay.

The miner confirmed the new cost estimate for the underground expansion in December, and noted that production would begin in October 2022.

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