appConfigEntityId

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

hooksArticlePageAdvertisementConfigArticle

liveArticle

appConfig

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

sectionsV2

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

json

Reuters

Rio Tinto is lining up project financing for a US$4 billion expansion of its long-delayed Oyu Tolgoi copper mine in Mongolia and will make a final investment decision early next year, a senior executive said on Thursday.
The mine, which started producing from an open pit over two years ago, is the biggest single foreign investment in Mongolia, and resolution of disputes over its second phase in May revived hopes for a string of other stalled mining projects.
“At the end of the day, what we need is consistency and stability and we believe we have the right environment today,” Rio Tinto copper and coal chief executive Jean-Sebastien Jacques said.
“As we speak, we are putting together the project finance and anticipate that will happen this year,” he said. “We expect early in the next year we will be able to take a decision about restarting the underground construction.”
The Anglo-Australian miner’s Turquoise Hill Resources arm owns 66 per cent of Oyu Tolgoi. The Mongolian government owns the remainder of the project, located in the Gobi desert near Mongolia’s border with China.
Disputes over taxes and construction costs on the first stage stopped work on the second phase in 2013.
The underground expansion, with 25 billion pounds of copper and 12 million ounces of gold reserves, will make Oyu Tolgoi one of the world’s top 10 copper mines and propel growth for Rio outside iron ore, where most of its revenue is generated.
Copper and other commodity prices are likely to remain subdued in the short term as markets come to terms with oversupply and slower Chinese growth, Jacques said.
“At some stage the winds will change and we will be asked how we are planning to grow the topline not just manage the bottom line,” he said.
A supply overhang in copper that’s left prices at their lowest in more than six years could take two to three years before shifting to a deficit, according to Jacques.
Separately, Rio Tinto declined to comment on a media report it was poised to approve an expansion of its South of Embley bauxite mine in Australia at a cost of $1 billion. Bauxite is used to make aluminium.


China’s Chalco, Rio Tinto buy Brazil’s CBA for US$886 million to tighten mineral grip

First China ore shipment rewards Guinea coup leader’s push for Simandou alliance

Mainland Chinese miner Zijin’s founder who built US$100 billion firm retires

EU’s investment bank to work with Australian government on critical raw materials

Rio Tinto Group

Rio Tinto lines up financing for Mongolia copper mine

An aerial view of traditional Mongolian tents, or ghers, which will house workers at Mongolia's Oyu Tolgoi copper and gold deposit being developed by Rio Tinto and Ivanhoe Mines in this November 10, 2007 file picture. To match Special Report DUTCH-MONGOLIA/TAX REUTERS/Tom Miles/Files (MONGOLIA - Tags: POLITICS BUSINESS)

Mongolian mine workers in the ore processing facility at the Rio Tinto operated Oyu Tolgoi gold and copper mine in the Gobi desert, southern Mongolia. Photo: AFP

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}