OYU TOLGOI RELEASES Q3 2023 PERFORMANCE RESULTS
- Oyu Tolgoi honored with “The Best Investor Organization in Education” Award by the Ministry of Education and Science
- Maintained one of the highest water use efficiency per tonne of ore produced compared to similar global operations
- Total in-country spend reached US$16.4 billion in taxes, fees and other payments
- Welcomed our customers at Oyu mine and shared our refreshed strategy, production outlook and future growth opportunities
Ulaanbaatar, Mongolia – Oyu Tolgoi released its latest performance scorecard highlighting key performance metrics for the third quarter of 2023 and provided an update on the underground mine production.
Oyu Tolgoi continues the ramp-up of the underground mine safely ahead of plan with a total of 72 drawbells opened from Panel 0 as of 30 September 2023, including 18 drawbells during the third quarter. The operation is expected to ramp up to deliver an average mined copper production of ~500ktpa (100% basis) between 2028 and 2036.
Construction of conveyor to surface works continued to plan and approaching 75% completion as at the end of September. Construction works for the concentrator conversion also progressed during the period, with the main contractor mobilised and required tie-in works completed during a planned plant shutdown.
During the quarter, Rio Tinto, Oyu Tolgoi and the Government of Mongolia continued to work together towards the implementation of Mongolian Parliamentary Resolution 103.
Operational Excellence
- Prioritised safety above all else and achieved an All Injury Frequency Rate (AIFR) of 0.20 per 200,000 people/hours worked.
- Maintained first quartile water-efficiency, using less than 0.55 cubic meters per tonne of concentrate (0.46 cubic meters for Q3 2023) compared to the 1.2 cubic meters per tonne average.
- 97.2% of Oyu Tolgoi’s workforce are Mongolian citizens. We are also proud to have 23.4% female workforce across Oyu Tolgoi LLC.
- Since 2010, Oyu Tolgoi has paid US$4.2 billion or MNT9.9 trillion in taxes, fees and other payments, including VAT, to Mongolian suppliers.
- Partnered with 812 suppliers, including 704 national businesses, accounting for 88% of the total operational procurement spend.
- Q3 2023 Performance Scorecard can be viewed here.
Production update
- Mined copper production on a 100% basis increased 16% compared to the third quarter of 2022 as the ramp-up in underground production continued to plan, delivering higher average copper head grades (0.52% vs. 0.42%). During the quarter we delivered 0.9 million tonnes of ore milled from the underground mine at an average copper head grade of 1.73%, and 8.8 million tonnes from the open pit with an average grade of 0.39%.
- Shaft sinking continued during the quarter and at the end of September, shafts 3 and 4 reached 780 metres and 879 metres below ground level, respectively. Updated final depths required for shafts 3 and 4 are 1,134 and 1,176 metres below ground level, respectively. We expect both shafts to be commissioned in the second half of 2024 with shaft sinking rates continuing to meet those required for this timeline.
Oyu Tolgoi Production Data
All data represents full production and sales on a 100% basis
| Description | Q3
2022 |
Q4
2022 |
Q1
2023 |
Q2
2023 |
QTD Q3’2023 | YTD Q3’2022 | YTD Q3’2023 |
| Ore Treated – consolidated (‘000 tonnes) | 10,685.00 | 9,410.53 | 10,287.58 | 9,708.84 | 9,688.82 | 29,950.89 | 29,685.23 |
| Ore Treated – OP (‘000 tonnes) | 10,140.72 | 8,900.21 | 9,612.80 | 8,808.56 | 8,788.71 | 28,685.60 | 27,210.08 |
| Ore Treated – UG (‘000 tonnes) | 544.28 | 510.32 | 674.77 | 900.28 | 900.10 | 1,265.29 | 2,475.15 |
| Average mill head grades (consolidated) : | |||||||
| Copper (%) | 0.42 | 0.45 | 0.49 | 0.52 | 0.52 | 0.41 | 0.51 |
| Gold (g/t) | 0.22 | 0.21 | 0.22 | 0.21 | 0.26 | 0.27 | 0.23 |
| Silver (g/t) | 1.32 | 1.21 | 1.30 | 1.34 | 1.44 | 1.24 | 1.36 |
| Average mill head grades (OT) : | |||||||
| Copper (%) | 0.40 | 0.41 | 0.43 | 0.41 | 0.39 | 0.398 | 0.41 |
| Gold (g/t) | 0.22 | 0.20 | 0.21 | 0.19 | 0.25 | 0.268 | 0.22 |
| Silver (g/t) | 1.28 | 1.14 | 1.16 | 1.10 | 1.19 | 1.22 | 1.15 |
| Average mill head grades (UG) : | |||||||
| Copper (%) | 0.82 | 1.03 | 1.36 | 1.56 | 1.73 | 0.642 | 1.57 |
| Gold (g/t) | 0.22 | 0.29 | 0.35 | 0.38 | 0.37 | 0.22 | 0.37 |
| Silver (g/t) | 2.16 | 2.54 | 3.26 | 3.67 | 3.94 | 1.777 | 3.66 |
| Copper concentrates produced (‘000 tonnes) | 173.58 | 151.94 | 201.76 | 200.26 | 197.64 | 463.87 | 599.67 |
| Average concentrates grade (% Cu) | 20.90 | 21.29 | 21.10 | 21.39 | 21.26 | 20.94 | 21.25 |
| Production of metals in concentrates: | |||||||
| Copper in concentrates (‘000 tonnes) | 36.28 | 32.34 | 42.58 | 42.83 | 42.02 | 97.13 | 127.42 |
| Gold in concentrates (‘000 ounces) | 42.72 | 34.22 | 44.07 | 40.35 | 51.23 | 149.56 | 135.65 |
| Silver in concentrates (‘000 ounces) | 255.64 | 203.57 | 266.15 | 267.51 | 286.57 | 667.56 | 820.22 |
| Sales of metals in concentrates: | |||||||
| Copper in concentrates (‘000 tonnes) | 41.85 | 25.28 | 41.38 | 43.24 | 42.73 | 107.05 | 127.35 |
| Gold in concentrates (‘000 ounces) | 56.04 | 26.18 | 43.96 | 40.41 | 48.72 | 181.31 | 133.09 |
| Silver in concentrates (‘000 ounces) | 281.53 | 151.69 | 241.51 | 257.50 | 269.14 | 684.43 | 768.14 |
| Open pit material mined (‘000 tonnes) | 26,101.90 | 21,314.94 | 21,906.04 | 23,367.00 | 24,108.78 | 76,038.05 | 69,381.82 |
| Concentrate sold in DMT | 211.08 | 126.71 | 205.64 | 215.09 | 208.44 | 534.73 | 629.17 |
| Metal recovery (%) | |||||||
| Copper | 80.90 | 79.93 | 82.45 | 83.19 | 83.00 | 80.19 | 83.55 |
| Gold | 56.63 | 56.10 | 59.27 | 60.54 | 60.84 | 58.58 | 61.37 |
| Silver | 57.04 | 56.30 | 61.20 | 62.11 | 60.95 | 56.41 | 62.80 |
Other Updates
- Following the acquisition of Turquoise Hill Resources Ltd by Rio Tinto on 16 December 2022, Rio Tinto’s share of production increased from 33.52% to 66%, effective in reporting from 1 January 2023. We continue to fully consolidate our financials to Rio Tinto.
-ENDS-
About Oyu Tolgoi LLC (ot.mn) Oyu Tolgoi LLC, Mongolia’s largest copper and gold mining company, is a strategic partnership between the Government of Mongolia and Rio Tinto. Located in the South Gobi, leading national mining company Oyu Tolgoi commenced product shipment to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.