Rio Tinto and Mongolia reach deal to advance Oyu Tolgoi copper mine
2022-01-25 13:58:41 [Print]
Rio Tinto Plc and the Mongolian government said on Tuesday they have reached an agreement to end a long-running dispute over the $6.93 billion expansion project for the Oyu Tolgoi copper-gold mining project.
Mongolia owns 34% of Oyu Tolgoi, one of the world's largest-known copper and gold deposits. Rio Tinto controls the rest through its 51% stake in Turquoise Hill Resources Ltd and operates the mine.
As part of the deal, Turquoise Hill will waive $2.4 billion in debt owed to it by the Mongolian government. Additionally, operations will soon start on the underground portion of Oyu Tolgoi, with first production expected in the first half of 2023.
The expansion will be paid for with cash, the rescheduling of existing debt repayments, and prepaid sales of copper concentrate to Turquoise Hill.
Mongolia owns 34% of Oyu Tolgoi, one of the world's largest-known copper and gold deposits. Rio Tinto controls the rest through its 51% stake in Turquoise Hill Resources Ltd and operates the mine.
As part of the deal, Turquoise Hill will waive $2.4 billion in debt owed to it by the Mongolian government. Additionally, operations will soon start on the underground portion of Oyu Tolgoi, with first production expected in the first half of 2023.
The expansion will be paid for with cash, the rescheduling of existing debt repayments, and prepaid sales of copper concentrate to Turquoise Hill.
Copper Conc. 20%min Delivered China
Unit:RMB/mt Cu
China's copper rod producers' suspension number statistics by province by month
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