Oyu Tolgoi produces more copper and less gold, anticipates $1.5B capital cost
(Kitco News) -Turqouise Hill's Oyu Tolgoi in Mongolia will need an increase in development capital cost of $1.5 billion, the company announced on Tuesday in its Q1.
The Turquoise Hill said the costs were already announced and involve the company's block cave design.
"These schedule and cost delays are within the estimates previously disclosed to the market and will undergo a period of further
detailed design, engineering and optimisation to support the definitive estimate" said the company in a news release.
Turqouise Hill had revenue of $130.7 million in Q1, a decrease of 62.9% from $352.7 million from the same period a year ago primarily due to both a 78.2% decrease in gold production and a 23.1% decrease in copper production.
In Q1 Oyu Tolgoi produced 35,203 tonnes of copper and 26,154 ounces of gold and is on track to achieve 2020 copper and gold production guidance.
Oyu Tolgoi has operated without interruption despite COVID-19, said Turquoise Hill, noting just a few delays in the construction of some underground infrastructure.
Turquoise Hill is majority owned by Rio Tinto.