SMM News: global mining giant Rio Tinto said recently that it has reached an agreement with Mongolia to provide electricity for its Oyu Tolgoi copper and gold mine through Tavan Tolgoi's state-owned coal-fired power plant.
Mongolia has a 34 per cent stake in the Oyu Tolgoi project, while Turquoise Hill Resources, which is majority owned by Rio Tinto, has a 66 per cent stake in the project.
The mining giant said in a statement that it would revise its existing power supply agreement with the Mongolian government by March 2021, under which the government would start building coal-fired power plants in July 2021.
The global mining company said the plant was built to power the Oyu Tolgoi project so that it could be put into use within the next four years.
Rio Tinto said the power supply for mines and underground projects would continue in accordance with existing terms before the state-owned plant went into production.
Rio Tinto warned in March that production in Mongolia's mines would slow because of the coronavirus.
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