Mongolian Prime Minister Luvsannamsrain Oyun-Erdene accompanies Rio Tinto Chief Executive Jakob Stausholm 1.3 kilometres underground to mark the start of underground production at the Oyu Tolgoi copper mine in the Gobi Desert.
This was followed by a ceremony attended by Oyu Tolgoi employees and leaders, Mongolian government representatives, Oyu Tolgoi Board members, and local suppliers to commemorate the significant step towards Oyu Tolgoi’s goal of becoming one of the world’s major copper suppliers.
Thirty drawbells have been blasted and copper is currently being produced from the underground mine after the agreement between the Government of Mongolia and Rio Tinto in January 2022 to reset the partnership and carry the Oyu Tolgoi underground project forward. By 2030, Rio Tinto said Oyu Tolgoi is predicted to be the world’s fourth-largest copper mine, operating in the first quartile of the copper equivalent cost curve. Hugo North Lift 1 is now processing ore from Panel Zero, and production will grow over the next several years.
The Oyu Tolgoi open pit and concentrator, a joint venture between Rio Tinto and Mongolia, has been in operation for almost a decade. Oyu Tolgoi now employs over 20,000 workers, 97% of whom are Mongolian.
According to Rio Tinto, the underground mine is a $7 billion project that will unlock the most lucrative portion of the copper deposit for the benefit of all stakeholders. Oyu Tolgoi is estimated to produce over 500,000 tonnes of copper annually from 2028 to 2036, enough to create around 6 million electric vehicles per year and an average of around 290,000 tonnes over the reserve life of around 30 years.
“I am proud to celebrate this major milestone with our partner Rio Tinto as we look towards Mongolia becoming one of the world’s key copper producers. The start of underground production at Oyu Tolgoi demonstrates our ability to work together with investors in a sustainable manner and become a trusted partner. The next phase of the partnership will enable the continued successful delivery of Mongolia’s ‘New Recovery Policy’ and Vision 2050 economic diversification strategy. Mongolia stands ready to work actively and mutually beneficially with global investors and partners,” Prime Minister Oyun-Erdene said.
Stausholm commented, “We would like to thank the Government of Mongolia for their commitment as our partner in achieving this remarkable milestone. We are starting underground production 1.3 kilometres beneath the remote Gobi desert from an ore body that will be critical for global copper production and Mongolia’s ongoing economic development. The copper produced in this truly world class, high technology mine will help deliver the electrification needed for a net zero future and grow Rio Tinto’s copper business.”
