Oyu tolgoi gold and copper mine This is the worlds largest copper and gold mine, Oyu Tolgoi, located about 550 kilometres south of Ulaanbaatar in the Gobi Desert. It is estimated to contain 16 million tonnes of copper and 623 tonnes of gold.Get A Quote
Oyu Tolgoi, the worlds third-largest copper mine, runs into more trouble.
The project passed a new milestone on November 21st when Mongolias parliament wrapped up a two-year investigation with a resolution demanding comprehensive measures to improve the terms of the two most important contracts governing the project the one on its first, surface-mine phase, signed in 2009 and one signed in Dubai in 2015 covering the much bigger second, underground, phase.
Oyu Tolgoi is very remotein the southern Gobi desert, some 550km south of the capital, Ulaanbaatar, and just 80km north of the Chinese border. It is a bleak landscape, home to nomadic herders who fear displacement and drought as the project sucks up the available water.
Production from the surface part of the mine began in 2013. The underground expansion has been delayed by difficult ground conditions and stability risks. It will involve extraction as much as 1.3km deep. Completion of this phaseexpected to increase production from 125,000-150,000 tonnes of concentrate a year to 560,000 tonneshas been put back by more than two years, to May 2022 at the earliest. Expected costs have risen by as much as 1.9bn from the original estimate of 5.3bn.
In the competitive democracy Mongolia has become since freeing itself from Soviet domination in 1990, it was also inevitable that Oyu Tolgoi would become a political football. Rival parties vie to complain, when in opposition, about how the country is being robbed blind by grasping foreign investors. Two factors make this worse.
The mines operators point to the benefits it has nevertheless already brought. It is the countrys biggest taxpayer and directly employs more than 15,000 people, 93 of them Mongolians, and, says the minister of mining and heavy industry, Sumiyabaar Dolgorsuren, supports 45,000 other jobs. But politicians think it should be paying more and complain that the government receives no dividends from its 34 stake because it has to repay the money borrowed from Rio to finance the investment. Indeed, analysts estimate it will get none until 2030, probably later.
The second is that Oyu Tolgois customer is China. The projects rationale is as a conveniently located supplier to the voracious mineral demands of Mongolias southern neighbour. But this has always raised fears of a kind of colonisation by a country viewed by many Mongolians with suspicion. Economically, Oyu Tolgoi and its district are far more integrated with China than with Ulaanbaatar. It does not help that, until a planned local power plant comes on stream, in 2023 at the earliest, Oyu Tolgoi pays China about 130m a year for electricity.
Even so, few in power in the country think it can risk a definitive rift with Rio. As Mr Sumiyabaar puts it, Oyu Tolgoi is a symbol of the mining sector and whether the world will trust in Mongolia. In London this week hoping to drum up more foreign investment in mining, he listed four areas where improvements are needed in the Oyu Tolgoi arrangementstaxes, power-supply arrangements, the interest rate Mongolia pays on the loans it has taken to finance its equity and the money that goes to development projects in the south Gobi.
Such modest enhancements are indeed probably the best the government can hope for. But Mongolia also knows that Oyu Tolgoi is hugely important to Rio, toothe company calls the mine its biggest growth project. And its development was long overseen by Jean-Sbastien Jacques, Rios chief executive, when he was head of the firms copper division. Both sides have an incentive to reach a compromise. The risk is that each overestimates the strength of its position.
infomining-mongolia.com 44 7557 234 995 Information. Board of Directors gold, copper, lead, inc and coal. The only mine in this region is the Khotgor hard coal open pit mine for local consumption, located 60km Northeast of the prospect area, 7km west of Shinejinst town. Also several other hard and brown coal occurrences are known in.
Mongolia is working with overseas investigators to look into claims of corruption at its giant Oyu Tolgoi copper mine, the countrys anti-graft body said on Tuesday, after the re-arrest of a.
Reuters reported that the Oyu Tolgoi copper-gold mine in the Gobi Desert is the biggest foreign investment project in Mongolias history. The project is jointly-owned by the government of Mongolia.
Aug 30, 2012nbsp018332This mine is believed to be the worlds third-largest copper and gold mine, and has become a hub for massive mining operations generating hundreds of jobs. The Oyu Tolgoi mine accounted for more than 30 of Mongolias total GDP in 2011.
ULAANBAATARLONDON Reuters - Mongolias Supreme Court has ruled against the governments attempt to nationalie a 49 percent stake in one of Asias biggest copper mines, industry sources said on Friday.
They said the owner of the holding - Mongolian Copper Corporation MCC - would now seek compensation through international arbitration over the Mongolian governments alleged breach of international rules on investors rights.
Dec 08, 2017nbsp018332Mongolias Supreme Court has ruled against the governments attempt to nationalie a 49 percent stake in one of Asias biggest copper mines, industry sources said on Friday.
The Supreme Court delivered its ruling on Thursday, effectively restoring to MCC the stake it bought in the Erdenet copper mine from the Russian government in 2016 for 400 million. The court did not respond to requests for comment.
Aug 10, 2013nbsp018332The construction of a huge mine in the middle of the Gobi Desert was supposed to catapult Mongolia toward rapid economic growth. But an ongoing conflict over profits from the gold and copper.
Erdenet Mining Corporation SOE was established in accordance with an agreement between governments of Mongolia and former Soviet Union. It started its operation in 1978. At present it is a fairly large complex processing 26 million tons of ore per year and producing around 530.0 thousand tons of copper concentrate and around 4.5 thousand tons.
MCC has been locked in a legal battle since February, when the Mongolian parliament voted to nationalie its 49 percent shareholding on the grounds the sale was not approved by the lawmakers.
The Supreme Court recognied MCC as the owner of the 49 percent stake in Erdenet, which produces 530,000 tonnes of copper concentrate annually, upholding a lower court ruling.
Those three mines combined to produce 383 million pounds of copper in 2018, led by the Lumwana mine in Zambia at 224 million pounds. Gold, however, is by far Barricks biggest moneymaker.
In 1973 the Soviet and Mongolian governments established a joint venture to develop a copper and molybdenum mine at what still is one of the largest deposits of copper ores in the world.
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