Power plant to be built at Oyu Tolgoi copper-gold mine in Mongolia
The under execution underground expansion of Oyu Tolgoi is expected to lift production from 125–150kt /kiloton/ this year to 560kt at full tilt from 2025.
Mining giant Rio Tinto will seek approval to build a power plant at its giant Oyu Tolgoi copper and gold mine in Mongolia and so comply with a 2009 investment agreement that calls for local suppliers to power the operation. The move would add further costs to an ongoing $5.3 billion underground expansion of the mine, said Oyu Tolgoi LLC, Mongolia’s largest copper and gold mining company, which is a strategic partnership between Mongolian government and Turquoise Hill, of which Rio Tinto owns 51%. Mongolia gave Rio four years to build a local power plant to serve the mine, a plan that could come with a bill as high as $1 billion. Rio has already earmarked $250 million a year for the development of a power station in Mongolia in its 2019 and 2020 spending plans. The under execution underground expansion of Oyu Tolgoi is expected to lift production from 125–150kt /kiloton/ this year to 560kt at full tilt from 2025, making it the biggest new copper mine to come on stream in several years.
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