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Mongolia’s Oyu Tolgoi copper-gold project costs increase

February 06, 2013 - 06:28 GMT Location: Singapore

KEYWORDS: Oyu Tolgoi , copper , gold , Mongolia , Rio Tinto , Turquoise Hill

The Oyu Tolgoi copper-gold mine in Mongolia expects phase 1 development to cost almost $1 billion more than originally expected, according to a statement on the company’s website on Tuesday, February 5.

Total capital expenditure for the first phase of the mine development is $6.6 billion compared with $5.7 billion stated in the project’s 2010 feasibility study.  Oyu Tolgoi, in which the Mongolian government has a 34% stake and Turquoise Hill Resources has the rest, is on track to achieve commercial production in the first half of the year, Rio Tinto said recently. Turquoise Hill is majority-owned and controlled by global miner Rio Tinto. "Currently, investors are seeking to raise project finance from international banking and financial institutions to enable the next stage of development," Oyu Tolgoi said. The mine is estimated to contain 25 million tonnes of recoverable copper. "Project financing would lower the...

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