Oyu tolgoi project and will likely be subject to further harm as the project goes forward. The project involves the development of one of the worlds largest copper deposits. On 22 april, 2015 oyu tolgoi llc, umnugobi aimag, khanbogd soum and other partner communities of umnugobi aimag entered into a cooperation agreement. The underground expansion of oyu tolgoi is rios most important growth project and will increase its production of copper at a time when the shift to. Partner in world class oyu tolgoi underground coppergold. The oyu tolgoi copper and gold project oyu tolgoi is being. It is also one of the most modern, safe and sustainable operations in the world q4 2019 figures. The company said it would update the market in due course. Ot watch was established by a group of csos which have actively. Oyu tolgoi signs project finance agreement 15 december 2015. Turquoise hill resources suite 3680 1 place villemarie montreal, quebec. On 28 september, gobi oyu development support fund the gobi oyu dsf, was established as an independent. Further underground development is subject to resolution of shareholder issues, approval of the feasibility study by oyu tolgoi s shareholders and. Delay of the project finance of oyu tolgoi and its.
Ifc support for oyu tolgoi international finance corporation. The jewel in the crown of mongolias discovered deposits is the oyu tolgoi project in southern mongolia, which is often credited as being the largest undeveloped coppergold project in the world. There is restricted access for teams from rio tinto, oyu tolgoi and our construction partners to oversee development and provide specialist technical services. The development of the underground mine at oyu tolgoi has been approved, marking the beginning of the next phase in the development of this worldclass resource. Fearing pressure by the company and the local government officials, we do not wish our identity to be disclosed for security reasons and request confidentiality. Turquoise hill remains committed to obtaining project finance to fund the development of the oyu tolgoi project and is engaging with the government of mongolia to achieve this. Ivanhoe mines ltd idop technical report march 2012 811014. A signing ceremony for the oyu tolgoi underground project finance package was held in ulaanbaatar, mongolia on 16 december 2015. The facility is being provided by a syndicate of international financial institutions and export credit agencies representing the governments of canada, the united states.
Oyu tolgoi has the potential to operate for approximately 100 years from five known mineralized deposits. Mining taxes centre for research on multinational corporations. Ceo of turquoise hill is in mongolia actively working on. On february 28th, 20, migas board of directors approved migas proposed support for this project. The oyu tolgoi mine is located in the south gobi region of mongolia. Otllc to secure and draw down on the supplemental debt under the oyu tolgoi project finance facility and the availability of additional financing on terms reasonably acceptable to oyu tolgoi stakeholders to further develop oyu tolgoi. The government of mongolia does not support the oyu tolgoi phase two project finance effort initiated by rio tinto. Oyu tolgoi is a worldclass, highgrade copper and gold deposit supporting a. Rio tinto continues to progress options to secure domestically sourced power for the oyu tolgoi copper mine. Further underground development is subject to resolution of shareholder issues, approval of the feasibility study by oyu tolgoi s shareholders and the mongolian minerals council, agreement of a comprehensive funding plan including project finance, and receipt of all necessary permits. Oyu tolgoi announces approval of underground project. May 18, 2015 oyu tolgoi shareholders sign agreement to progress the development of underground mine. Government of mongolia to finance tavan tolgoi power plant.
The ebrd is considering a project involving the development, construction and operation of a mine and ore processing facility at the oyu tolgoi copper, gold, silver and molybdenum deposit located in the southern gobi region of mongolia. Mongolia refuses to support rio tinto financing effort for oyu tolgoi by. The survey will test oyu tolgoi s copper and gold mineralised trend. Coinvests with ifc in equityrelated investments in the infrastructure sector in emerging. Provides an introduction to the fields of project finance and infrastructure finance, and gives a statistical overview of project financed investments over the years from 2009 to 20. Work on the underground project continues, however there is restricted access for teams from oyu tolgoi, rio tinto and our construction partners to oversee development and provide specialist technical services. The project is being developed by rio tinto, an international mining company. Jacobs wins epcm contract for oyu tolgoi underground project. Oyu tolgoi has secured project finance for the underground mine development with funding by. Oyu tolgoi shareholders sign agreement to progress the. Rio tinto owns a 51% share of turquoise hill resources and manages the project. Executive summary an overview of oyu tolgoi phase 2 mining plans and some of the issues and risks associated with block cave underground mining, international metal price uncertainty, project power supply, and impacts on water resources used by herders. Rio tinto progresses oyu tolgoi power options morningstar. If this project is successfully developed, the gdp of mongolia could double in a relatively short period of time.
The oyu tolgoi mine, located in the southern gobi region, is mongolias. Oyu tolgoi funding puzzle shows rio tinto between a rock and a hard place. Oyu tolgoi is owned 66% by turquoise hill resources and 34% by the government of mongolia. This allows foreign investors interested in mining investment to provide that capital for significant returns. Partner in world class oyu tolgoi underground coppergold mine. The oyu tolgoi ot project, located approximately 550 kilometers south of mongolias capital city of ulaanbaatar is considered to be one of the worlds largest coppergold deposits, containing approximately 40 billion pounds of. Complaint regarding the oyu tolgoi project cao ombudsman. Rio tinto slows expansion of oyu tolgoi copper mine in. The oyu tolgoi underground feasibility study includes analysis of two production cases, the 2014 reserve case and the 2014 life of mine lom case. Unofficial translation vicepresident, compliance advisor. Apr 05, 2019 the flagship oyu tolgoi project helped spur a mining boom that drove economic growth up to double digits from 201120, but a rapid collapse in foreign investment and falling commodity prices saw. Rio tinto says it remains confident in the longterm prospects for copper, as it pushes ahead with a multibilliondollar expansion of its key oyu tolgoi mine. Oyu tolgoi is one of the worlds largest new coppergold mines and is located in the south gobi region of mongolia, approximately 550 km south of the capital, ulaanbaatar, and 80 km north of the mongoliachina border.
Rio tinto under fire as mongolia presses for mine deal. Mongolia lawmakers seek to rewrite oyu tolgoi deal reuters. The event was held in the presence of prime minister saikhanbileg, minister for mining r. Work on the underground project continues, however, progress is being slowed as a result of these measures. Jec announced today it signed a contract with oyu tolgoi llc to provide engineering, procurement and construction management epcm services for the next stage in the development of the oyu tolgoi copper and gold mine in mongolia, the oyu tolgoi underground project. Concentrator and associated mine infrastructure airport, water pipeline. Jigjid, andrew woodley, ceo oyu tolgoi, batsukh galsan chairman of the board of directors, oyu tolgoi, and key representatives of the lender organizations participating. The oyu tolgoi ot project, located approximately 550 kilometers south of mongolias capital city of ulaanbaatar is considered to be one of the worlds largest coppergold deposits, containing approximately 40. Drill core logging, field mapping, geochronology and geochemistry were used to constrain the stratigraphy, structure, timing and origin of the worldclass cuau deposits in the south gobi desert. Measures put in place by mongolias government to contain the spread of covid19 have slowed progress on the underground development of rio tintos oyu tolgoi project, although openpit. Oyu tolgoi passes sovereign risk test with flying colors.
Covid19 puts brakes on rios oyu tolgoi project mining. Mining taxes the case of oyu tolgoi and profitable tax avoidance by rio tinto in mongolia january 2018 oyu tolgoi watch ulaanbaatar, 46a mongolia t. This phd research project focused on the volcanostratigraphic framework and magmatic evolution of the oyu tolgoi porphyry cuau district in mongolia. Oyu tolgoi finalizes underground feasibility study toronto.
Prime minister of mongolia mp chimediin saikhanbileg said mongolia is back to business. An overview of project finance and infrastructure finance. Since 2010, rio tinto has also been the manager of the oyu tolgoi project. Summary of action mongolias mining sector is a significant contributor to the economy as well as a key water user. Government of mongolia to finance tavan tolgoi power plant project. Ulf quellmann, ceo of turquoise hill, is in mongolia actively working on this matter with the oyu tolgoi llc team as well as rio tinto. Mongolia signed an investment agreement for the oyu tolgoi project that. Mongolia will vote in august to rip up parts of an investment agreement with rio tinto for the oyu tolgoi copper mine, which may force the miner to make concessions in a project. Jul 19, 2019 mongolia will vote in august to rip up parts of an investment agreement with rio tinto for the oyu tolgoi copper mine, which may force the miner to make concessions in a project beset by delays. Oyu tolgoi funding puzzle shows rio tinto between a rock. Oyu tolgoi is one of the largest known copper and gold deposits in the world. More than 80% of oyu tolgoi s total value lies deep underground.
This follows canadian stock exchange rules and shows positive project economics from. Coronavirus further slows oyu tolgoi measures put in place by mongolias government to contain the spread of covid19 have slowed progress on the underground development of rio tintos oyu tolgoi project, although openpit operations continue, the major said on monday. Copper demand from evs and evrelated infrastructure. Pursuant to the ia and the arsha, ot llc is developing and operating the oyu tolgoi.
This environmental and social impact assessment esia is based on the initial construction of an open. This report sets out our analysis of huge oyu tolgoi mining project in mongolia, based entirely on public sources, and mainly on a 2014 technical report published by turquoise hill resources. The rio tinto managed oyo tolgoi copper and gold mine located in the water scarce south province has recognised the importance of optimizing. Export finance australia is contributing to the financing of the expansion of the oyu tolgoi gold and copper mine, which will create a number of opportunities in the project s supply chain, many of which are expected to be awarded to australian smes. This follows canadian stock exchange rules and shows positive project economics from 2015 forward as the basis for. We are building an underground mine complex, using blockcaving mining techniques to extract the ore and transport it to the surface. Anton rhling program manager oyu tolgoi financial model. Development and financing plans for mining the ot reserve case ore is the. Turquoise hill provides update on oyu tolgoi project. Nomadic households live one by one in remote areas. The staterun ttpp, which will supply electricity to the oyu tolgoi mine, will be established at. Sep 22, 2014 further underground development is subject to resolution of shareholder issues, approval of the feasibility study by oyu tolgoi s shareholders and the mongolian minerals council, agreement of a comprehensive funding plan including project finance, and receipt of all necessary permits. Oyu tolgoi llc multilateral investment guarantee agency. The transaction was awarded project finance s african mining deal of the year and mining journals most effective financing of a mine or expansion project.
The oyu tolgoi copper mine in mongolia is a worldclass open pit mine and underground project. Audit committee means the audit, finance and procurement committee of the oyu tolgoi. If we use current prices project economics are significantly worsened, though the underground mine development remains viable on a forward looking basis. Oyu tolgoi underground mine development and financing.
Second complaint oyu tolgoi02 regarding the oyu tolgoi. In february 2020, turquoise hill resources, an international mining company, who owns 66 percent of the oyu tolgoi mine in mongolia, has submitted a ttpp feasibility study, based on a 300 mw coal fired power plant to be located approximately 150 kilometers from the oyu tolgoi mine in tsogttsetsii soum of umnugobi aimag, with a total project. Oyu tolgoi is a worldclass coppergold asset and its further development is of great economic significance for mongolia. Mongolia refuses to support rio tinto financing effort for. Project complaints mechanism, eligibility assessment report request no. Rio tinto is working with the government of mongolia to ensure oyu tolgoi is operating in accordance with the restrictions the mongolian authorities have put in place to contain the spread of. Plans, issues and risks an overview of oyu tolgoi phase 2 mining plans and some of the issues and risks associated with block cave underground mining, international metal price uncertainty, project power supply, and impacts on water resources used by herders. Oyu tolgoi llc is located in mongolias south gobi region. The survey will test oyu tolgois copper and gold mineralised trend. Mining projects in mongolia need capital to finish securing minerals from the ground, and the financial institutions are not in place inside mongolia to provide large amounts of cash. The oyu tolgoi mine is located in the south gobi region of mongolia, approximately 550.
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