OverviewOyu Tolgoi Project website
Oyu Tolgoi is one of the world's largest new copper-gold mines and is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border.
The comprehensive Oyu Tolgoi Investment Agreement took effect March 31, 2010, following confirmation by the Government of Mongolia that procedural and administrative conditions contained in the Investment Agreement had been satisfied within the allocated six-month period that has followed the agreement's official signing in October 2009. The comprehensive Investment Agreement now has taken full legal effect.
On October 6, 2009, Turquoise Hill Resources and Rio Tinto signed a long-term, comprehensive Investment Agreement with the Government of Mongolia for the construction and operation of the Oyu Tolgoi copper-gold mining complex. The agreement creates a partnership between the Mongolian Government -- which acquired a 34% interest in the project -- and Turquoise Hill Resources, which retained a controlling 66% interest in Oyu Tolgoi. Global miner Rio Tinto, which joined Turquoise Hill Resources as a strategic partner in October 2006, is managing the development of Oyu Tolgoi.
Oyu Tolgoi has been producing and exporting copper and gold concentrate since 2013.
Major highlights for the first four months of 2014 include the following:
• Oyu Tolgoi achieved a strong safety performance in Q1'14 with no fatalities and an All Injury Frequency Rate of 0.34 per 200,000 hours worked.
• In Q1'14, Oyu Tolgoi produced 102,900 tonnes of copper-gold concentrate containing 25,300 tonnes of copper.
• Oyu Tolgoi recorded net revenue of $108.0 million in Q1'14 on sales of approximately 48,200 tonnes of copper-gold concentrate.
• Oyu Tolgoi's concentrate sales continue to increase with April 2014 sales of approximately 68,000 tonnes; April 2014 sales exceeded production resulting in an inventory drawdown.
• Contracts have been signed for 94% of Oyu Tolgoi's expected 2014 concentrate production and long-term contracts account for 91% of 2015 planned production; additionally, 84% of Oyu Tolgoi's concentrate production has been contracted for up to eight years (subject to mutually agreed renewals).
• Q1'14 production at Oyu Tolgoi was heavily impacted by post-commissioning issues, including rake blade failures in the tailings thickeners, which caused the shutdown of one production line for approximately seven weeks.
• Oyu Tolgoi's Q2'14 production rates have now returned to normal and the concentrator is operating close to nameplate capacity.
• As operations transition from post-commissioning to steady-state, Oyu Tolgoi has been focusing on costs and productivity; extensive work is well underway in a number of areas to improve operational performance.
• Project finance commitments have been extended to September 30, 2014.
• Further underground development at Oyu Tolgoi is expected to recommence once successful resolution has been reached on the mine's outstanding shareholders issues, agreement of a comprehensive funding plan including project financing, completion and approval of the underground feasibility study and obtaining all necessary permits for the mine's expansion.
• Turquoise Hill successfully closed a $2.4 billion rights offering in January 2014 and repaid all outstanding Rio Tinto funding facilities.
(Current as of May 12, 2014)
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The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 40-F which may be secured from us, or from the SEC's website at www.sec.gov/edgar.shtml.