The board of directors for Oyu Tolgoi LLC has approved development work at the Mongolian copper mine to commence under an alternative plan, while engagement continues with Entrée Resources and the government on the transfer of licences to allow mining in a joint venture area.
“Oyu Tolgoi continues to ramp-up as planned, with the cave performing above expectations. Our understanding of the ore body is growing as production and development progresses, further increasing our confidence and flexibility. With lateral development work only just beginning in Panel 1, this is the right time to pivot and bring forward development in Panel 2 South to maintain our options,” said Rio Tinto Copper Chief Executive Katie Jackson.
“Transferring the licences for the Entrée joint venture area will maximise the value Oyu Tolgoi delivers for all parties, and we are continuing to work with the Government of Mongolia and Entrée Resources towards this outcome.”
Panel 1, which includes the Entrée JV area, was intended to support production from 2027 under the existing mine plan. However, development work in the area is now paused until the necessary transfer of licences from Entrée to Oyu Tolgoi is processed by the Mongolian government. Limited development work will continue in Panel 1 outside the Entrée JV area, with resources being redeployed to bring forward development work in Panel 2 South.
The ramp-up of production from Oyu Tolgoi remains on track to deliver an average of around 500,000 tonnes per annum of copper from 2028 to 2036, with options including bringing Panel 1 or Panel 2 South into production first depending on the timing of the licence transfers.
Oyu Tolgoi LLC is jointly owned by Rio Tinto (66%) and the Government of Mongolia (34%).
Source: Rio Tinto