Rio Tinto: Oyu Tolgoi project cost may be increased by US $1.9 billion to 30 months

Published: Jul 16, 2019 10:39

Save

Due to potential stability risks and severe ground conditions, the cost of underground works for the Oyu Tolgoi copper and gold project in Mongolia could be increased by another US $12 to US $1.9 billion, and the construction period will be extended to 16 to 30 months, Rio said. So the total cost of the project is expected to be $6.5 billion to $7.2 billion, higher than the previous estimate of $5.3 billion. The first commencement date is expected to be between May 2022 and June 2023.

SMM7, 16 Feb: due to potential stability risks and severe ground conditions, the cost of underground works for the Oyu Tolgoi copper and gold project in Mongolia could be increased by another US $12 to US $1.9 billion, and the construction period will be extended to 16 to 30 months, Rio (Rio Tinto Group) said.

So the total cost of the project is expected to be $6.5 billion to $7.2 billion, higher than the previous estimate of $5.3 billion. The first commencement date is expected to be between May 2022 and June 2023.

The company said the final budgeted cost and duration would be announced in the second half of next year.

A number of Rio Tinto copper projects are under way.

Rio Tinto, for example, is excavating the Winu copper project in western Australia, which, if true, could be produced earlier than the US Resolution copper project, and Rio says there may be larger mining areas around the Winu project.

In addition, an important study on the Resolution copper mine in the United States will be completed in 2021. Rio Tinto had expected Resolution copper production to meet 1/4 of domestic demand. "related news-Rio Tinto may unearth important copper mines in Australia and be optimistic about global copper demand

Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business

Copper capacity price forecast output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

7 hours ago

Rio Tinto Halts Kennecott Copper Mine Operations After Worker Fatality, Awaits Investigation

Following a worker fatality on March 12, Rio Tinto suspended operations at its Kennecott copper mine in Utah, US. In a statement posted on its official website, Rio Tinto said that all surface and underground mining operations at Kennecott (also known as Bingham Canyon Mine) had been suspended. Chief Executive Officer Simon Trott said the company was working closely with the relevant authorities and contractor partners to support a full and thorough investigation.

7 hours ago

First Quantum to Sell Turkey's Çayeli Mine to Cengiz for $340M, Awaits Regulatory Approval

Canada-based First Quantum Minerals will sell its Çayeli mine in Turkey to Cengiz Holding for $340 million in cash as part of its portfolio optimization strategy.Cengiz Holding will acquire the underground copper-zinc mine through its subsidiary CengizInsaat.First Quantum Chief Executive Officer Tristan Pascall said, "The sale reflects the company's disciplined approach to portfolio management while focusing on its core strategic priorities."The transaction remains subject to regulatory approvals and is expected to be completed in Q2 or Q3 of this year.

7 hours ago

Khark Island Attack Foiled: Defense Restored, Oil Operations Unaffected, No Casualties Reported

The situation on Khark Island has been brought under control, and the defense system was restarted shortly after coming under attack. According to reports, following the attack on Khark Island, preliminary observation and assessment found that the island’s critical oil infrastructure sustained no damage, and related operations are continuing. All employees in the oil sector on Khark Island were unharmed. Citing informed sources, the report said that the attackers failed to achieve their intended strategic objectives.

7 hours ago