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
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