Rio Tinto Says Study Confirms Feasibility of Oyu Tolgoi Underground Mine
July 02 2020 - 07:01PM
Dow Jones News
By David Winning
SYDNEY--Rio Tinto PLC said an updated study of the Oyu Tolgoi
copper-mining operation in Mongolia had confirmed the feasibility
of an underground mine costing up to $7.1 billion to build.
Rio Tinto said the study incorporated a new mine design for
Panel 0 of the Hugo Dummett North underground mine at Oyu Tolgoi.
It will now submit the findings to the Mongolian government.
"This amended mine design is another positive step in the
development of the underground mine which will unlock the most
valuable part of Oyu Tolgoi," said Arnaud Soirat, chief executive
of Copper & Diamonds. "We remain focused on delivering the
underground project safely and within the guidance ranges we have
announced on both cost and schedule."
Those ranges include a delay of 21 to 29 months for first
sustainable production compared to the original feasibility study
guidance in 2016 and an increase of $1.3 billion to $1.8 billion
from the original $5.3 billion development capital, Rio Tinto
said.
Rio Tinto owns 33.5% of Hugo Dummett North and 29.5% of Hugo
Dummett North Extension.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
July 02, 2020 18:46 ET (22:46 GMT)
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