(Kitco News) - On Thursday, Turquoise Hill Resources (TSX: TRQ) announced Q2 2022 copper production of 30.6 thousand tonnes, a decrease of 17% vs Q2 2021, at the Oyu Tolgoi mine in Mongolia.
In addition, Oyu Tolgoi produced 47.6 thousand ounces of gold in Q2 2022, a decrease of 58% vs Q2 2021, as well as 201 thousand ounces of silver, a decrease of 14% vs Q2 2021.
Importantly, the company said that copper production guidance for 2022 remains within the range of 110,000 to 150,000 tonnes while 2022 gold production guidance has been revised from a range of 135,000 – 165,000 ounces to 150,000 – 170,000 ounces.
According to the company’s statement, capital expenditures on the underground project are now expected to be $1.1 billion to $1.3 billion for 2022 compared to original guidance of $1.2 billion to $1.4 billion due to slower than expected workforce ramp-up following commencement of the undercut in January.
Total operating cash costs for 2022 are now expected to be in the range of $850 million to $925 million compared to original guidance of $800 million to $875 million due to higher royalties and price inflation for key raw materials, especially fuel and the lower deferred stripping.
Turquoise Hill is focused on the development and advancement of its Oyu Tolgoi copper mine in southern Mongolia. Oyu Tolgoi is one of the world’s largest new copper-gold 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 Mongolia-China border.
Oyu Tolgoi has the potential to operate for approximately 100 years from five known mineralized deposits. The first of those (the Oyut deposit) was put into production as an open-pit operation in 2013.
Global miner Rio Tinto, which joined Turquoise Hill Resources as a strategic partner in October 2006, began managing the development of Oyu Tolgoi in December 2010.
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