– Mine on schedule for commercial production –
Ulaanbaatar, Mongolia – Oyu Tolgoi, the copper and gold mine in the Umnugobi, today announced another major milestone, as the company confirmed that it has struck a power purchase agreement to supply the mine with power. Commissioning of the concentrator is expected to begin within a few weeks, and Oyu Tolgoi is on course for commercial production in the first half of 2013.
The news comes shortly after the celebration of the third anniversary of the Oyu Tolgoi Investment Agreement, which has enabled US$6 billion to be invested in Mongolia.
The negotiations on power were led by a working group comprised of the shareholders in Oyu Tolgoi, and the government worked closely with international investors to finalise the deal.
The power has been sourced from China as the Mongolian grid could not supply and sustain the power necessary for Oyu Tolgoi, and a transmission line from Russia was not the best economic solution for the project given infrastructure and pricing.
Oyu Tolgoi President and CEO Cameron McRae said: “This is another major step in the project and our progress towards full production. We have a deal for power that will guarantee enough energy for Mongolia’s most important economic investment. This is an important moment and a cause for celebration for Mongolia.”
About Oyu Tolgoi LLC (http://en.ot.mn/)
Oyu Tolgoi LLC is Mongolia's largest copper and gold mining company and is a strategic partnership between the Government of Mongolia (34 per cent stake), Turquoise Hill Resources (66 per cent) and Rio Tinto. Rio Tinto is the major shareholder in Turquoise Hill Resources and the manager of the Oyu Tolgoi project. In addition to dividends from its 34 per cent stake in Oyu Tolgoi, the Government of Mongolia will receive taxes and royalties.
Oyu Tolgoi, located in the Gobi desert in southern Mongolia, will be one of the largest and highest-grade copper and gold mines in the world. It is the largest project ever developed in Mongolia, requiring a capital investment for phase 1 of more than US$6 billion.
Oyu Tolgoi is committed to contributing to a sustainable future for Mongolia. At least 9 out of 10 employees will be Mongolian once the mine is in production and Oyu Tolgoi is investing US$58 million dollars (78 billion MNT) in training and education and an additional US$27 million dollars (36 billion MNT) in the Workforce Employment Project designed to help address the general skills shortage in Mongolia
Oyu Tolgoi's key priorities are the health and safety of employees, best-practice environmental management, contributing to sustainable communities and always doing business with integrity, for the benefit of all the project's shareholders and the people of Mongolia.
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