Oyu Tolgoi’s underground mine expansion to increase GDP growth
Oyu Tolgoi’s underground mine expansion to increase GDP growth.
Oyu Tolgoi’s underground mine expansion to increase GDP growth of Mongolia. The development of the underground mine at Oyu Tolgoi is approved, marking the beginning of the next phase in the development of the world-class resource. The decision follows approvals by Rio Tinto, the Government of Mongolia and Turquoise Hill Resources to invest USD 5.3 billion to expand the mine, and the recent granting of all required permits. Work on the project will begin from the middle of this year and first production from the underground mine is expected in 2020. When the underground is fully ramped up in 2027, Oyu Tolgoi is expected to produce more than 500,000 metric tons of copper a year. Oyu Tolgoi, about 80 kilometers or 50 miles north of the Chinese border, will rank as the third-largest in the world at full production. At the peak of construction, it is expected that Oyu Tolgoi will employ 3,000 people on the Underground project, and build on its deep relationships with Mongolian suppliers. Progress on Oyu Tolgoi’s underground extension, where about 80 per cent of the deposit’s mineral wealth is located, stalled in mid-2013 amid disagreements over taxes and cost overruns that were resolved last May.
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