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 third quarter of 2016 include the following:
• Oyu Tolgoi achieved an excellent safety performance with an All Injury Frequency Rate of 0.12 for open-pit operations and 0.26 for the underground project per 200,000 hours worked for the nine months ended September 30, 2016.
• Good progress continued during Q3'16 on underground development, including ongoing contractor mobilization and the signing of an additional contract for the sinking of Shafts 2 and 5.
• At the end of Q3'16, Oyu Tolgoi had spent $105.8 million on underground expansion capital and had commitments of more than $750 million.
• On October 21, 2016, Turquoise Hill filed the updated Oyu Tolgoi Technical Report.
• Oyu Tolgoi recorded revenue of $226.3 million in Q3'16, a decrease of 31.4% over Q2'16, primarily reflecting reduced gold sales as a result of lower gold production.
• Turquoise Hill generated operating cash flow before interest and taxes of $24.0 million in Q3'16 reflecting the impact of reduced gold production and sales in concentrates.
• For Q3'16, Turquoise Hill reported a net loss from continuing operations attributable to shareholders of $31.4 million.
• In Q3'16, concentrator throughput declined 4.0% over Q2'16 due to planned maintenance and conveyor belt repairs.
• Copper production in Q3'16 declined 9.9% over Q2'16, as a result of lower recovery from Phase 6 ore.
• As expected, gold production in Q3'16 declined 47.1% over Q2'16 due to lower grades from the completion of mining Phase 2.
• For Q3'16, Oyu Tolgoi's C1 cash costs were $1.56 per pound of copper and all-in sustaining costs were $2.00 per pound of copper.
• Turquoise Hill's cash and cash equivalents at September 30, 2016 were approximately $1.4 billion.
• Turquoise Hill Chair Jill Gardiner has decided to retire from the Company's Board effective December 31, 2016. Independent director Peter Gillin has been appointed as Chair of the Board of Directors effective January 1, 2017.
Cautionary Note to U.S. Investors
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.