– By reaching this milestone the Oyu Tolgoi project moves from construction to operating mine –
Ulaanbaatar, Mongolia – Mongolia’s world-class copper and gold mine, Oyu Tolgoi, today announced the commencement of commercial shipments of its copper concentrate. This marks a significant milestone for the business and Mongolia with the project moving from the construction stage to the operation of a safe and sustainable working copper mine.
After reviewing the Marketing Agreements, the Board of Directors of Oyu Tolgoi unanimously endorsed the commencement of shipping. All permits and authorities for exporting copper concentrate are in place together with Board approvals and authorities required for continued concentrate sales. Oyu Tolgoi remains committed to maintaining transparency in its operations and managing export revenues consistent with the Investment Agreement.
The total size of the initial sale will be approximately 5,800 tonnes of copper concentrate. Today, the first convoy of 16 trucks, carrying 576 tonnes of 'Oyu Tolgoi – Product of Mongolia' copper concentrate departed towards the Gashuun-Sukhait border crossing. Following the Naadam holiday, the remainder of the shipment will be transported to customers.
Cameron McRae, Oyu Tolgoi CEO and President said: “Everybody involved in Oyu Tolgoi is immensely proud today. Constructing a mine of this scale is a fantastic achievement but watching Mongolian concentrate leaving the gates is the moment we have all been working towards. Today is a big first step in moving from a world-class construction project to a world-class copper business. My thanks go to everyone who has played a role in bringing us to this point.”
Currently, copper concentrate is processed from Oyu Tolgoi’s open pit ore. The richest part of the deposit will be accessed by an associated underground mine. Even though full funding to proceed with the underground has not been approved, early development has already begun. Even at its current production, however, the operation of the mine will provide significant income to the Government through royalty payments and tax revenue.
Oyu Tolgoi has already had a positive impact on Mongolia. It was recently named by the Mongolian government as creating the most jobs and paying the second highest taxes of all companies last year, even before sales commenced. Oyu Tolgoi has also developed significant infrastructure in the South Gobi, much of which will benefit local people as well as allowing the mine to operate. To prepare a strong future workforce, Oyu Tolgoi is investing US$126 million in education and training over five years.
About Oyu Tolgoi LLC (http://ot.mn/en)
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the Umnugobi, Oyu Tolgoi has commissioned Concentrator plant in December, 2012 and commenced shipments of copper concentrate in July of 2013. As the biggest single investment in Mongolian history, Oyu Tolgoi already is a major driver of the country’s economy.
Oyu Tolgoi is managed by Rio Tinto, which is 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. Oyu Tolgoi is developing a nationwide vocational training programme, regional infrastructure, and is committed to ensuring more than 90 per cent Mongolian national employment and a strong Mongolian supplier base. These programmes will help drive economic growth for generations to come.
Oyu Tolgoi’s core commitment is to a safe work place and setting a new standard in environmental care.
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