The Government of Mongolia, Turquoise Hill Resources and Rio Tinto have signed the Oyu Tolgoi Underground Mine Development and Financing Plan which represents a significant step forward for the development of the underground mine at Oyu Tolgoi in Mongolia.
Image credit: www.riotinto.com
According to the press release by Rio Tinto, the plan addresses the “key outstanding shareholder issues” and sets out an “agreed basis for the funding of the project”, allowing all parties to focus on finalising the project finance, the feasibility study and securing all necessary permits so that the underground mine development can proceed.
“Our joint announcement today reflects tremendous leadership by all parties and paves the way for work to resume on the underground development, which is expected to deliver significant value to shareholders,” said Rio Tinto Copper and Coal Chief Executive, Mr Jean-Sébastien Jacques.
“The resolution of the outstanding issues reinforces the principles of the Investment Agreement signed in 2009, which underpinned the US$6 billion invested in Oyu Tolgoi to date, and provides a clear and stable framework for the future.”
Turquoise Hill Resources CEO Jeffery Tygesen said the signing of the agreement was the culmination of extensive work by Oyu Tolgoi’s shareholders over the last year.
“The agreement outlines a pathway to restarting development of the underground mine, and builds on the value that has already been unlocked for Mongolia from the operation of the open-pit mine which is providing jobs and other economic contributions as well as best practices in mining standards,“ Mr Tygesen said.
The project is advancing as planned, with the construction of the open-pit mine of the pioneering Oyu Tolgoi underground mine – the project’s first phase development phase – completed on schedule in less than 24 months.
In March 2015, the operation celebrated one million tonnes of copper concentrate shipped in less than two years after the first production left the mine.
