Rio Tinto have unveiled a pathway for one of the worlds largest gold and copper deposits
(Kitco News) - Rio Tinto have laid out plans for the ongoing development of the underground project at Oyu Tolgoi in Mongolia. It is said to be one of the largest known copper and gold deposits in the world. The definitive estimate details how Oyu Tolgoi underground will achieve sustainable production for Panel 0 by October 2022 for development capital of $6.75 billion.
Rio Tinto and its partners, the Government of Mongolia and Turquoise Hill Resources (TRQ), need to continue to work together to finalise three other milestones. At peak production, Oyu Tolgoi is expected to operate in the first quartile of the copper cash cost curve and by 2030 is expected to be the fourth largest copper mine in the world.
According to their regulatory announcement, Oyu Tolgoi is expected to produce 480,000 tonnes of copper per year on average from 2028 to 2036 from the open pit and underground, compared with 146,300 tonnes in 2019 from the open pit. The underground Ore Reserve has an average copper grade of 1.52 per cent, which is more than three times higher than the open pit Ore Reserve, and contains 0.31 grammes per tonne of gold. The size and quality of this Tier 1 asset provides additional expansion options, which could see production sustained for many decades.
Rio Tinto (RIO:LSE) shares are once again trading higher (0.62%) in EU trading hours. The price continues to make yearly highs and the all-time high at 5921 is in sight.