Mining titan Rio Tinto has signed a binding agreement with a Chinese power company for the supply of electricity to Oyu Tolgoi, the nearly-completed copper and gold mine in Mongolia.
As a result, within the next few weeks, Oyu Tolgoi will start a seven-week commissioning of the ore-processing equipment. The firm believes that first concentrate production will follow within one month and the commencement of commercial production is expected three to five months after that.
Rio Tinto's Copper Chief Executive Andrew Harding said: "This agreement means we are on track to bring the first phase of the world-class Oyu Tolgoi mine into production in the first half of 2013. When fully developed it will be a top-five copper producer with significant gold production.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Rio Tinto and its partners have invested almost $6bn in this vast project, completing it in only 28 months. We have trained and employed thousands of Mongolians and Oyu Tolgoi will be a vital contributor to Mongolia's economic development."
The firm added that Oyu Tolgoi has built a power line from the mine to the town of Khanbogd, which will provide the community with access to around-the-clock electricity for the first time.
NR
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
