Oyu 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 past year include:

Q3 2017
  • Oyu Tolgoi achieved an All Injury Frequency Rate of 0.25 per 200,000 hours worked for the nine months ended September 30, 2017.
  • During Q3'17, underground lateral development made good progress and since the re-start of development a total of 5.4 equivalent kilometres has been completed.
  • Shaft 2 sinking was at 1,249 metres at the end of Q3'17 and sinking is expected to be complete by the end of 2017 with fit out occurring over 2018.
  • During September 2017, the underground development team achieved the best sinking rate for Shaft 5 since project restart averaging 2.6 metres per day.
  • At the end of Q3'17, total underground project spend since re-start and capital commitments totaled $1.9 billion.
  • First draw bell is planned for mid-2020 and sustainable first production in 2021.
  • Oyu Tolgoi set three operational records during Q3'17 for total material mined, ore treated and average daily concentrator throughput.
  • Revenue of $246.9 million in Q3'17 increased 21.2% over Q2'17 reflecting higher copper and gold prices partly offset by lower concentrate sales.
  • Cash generated from operating activities before interest and taxes in Q3'17 was $94.7 million and $234.7 million year-to-date at the end of Q3'17.
  • In Q3'17, the Company recorded net income attributable to owners of Turquoise Hill of $65.3 million or $0.03 per share.
  • Copper production in Q3'17 was essentially flat compared to Q2'17 while gold production increased 29.2% over Q2'17 due to higher head grades from the medium-grade stockpile and Phase 4A.
  • For Q3'17, Oyu Tolgoi's cost of sales was $2.43 per pound of copper sold; C1 cash costs were $1.83 per pound of copper produced and all-in sustaining costs were $2.76 per pound of copper produced.
  • Operating cash costs1 of $161.9 million for Q3'17 were relatively flat over Q2'17 while year-to-date operating cash costs of $494.0 million at the end of Q3'17 declined 17.7% over year-to-date Q3'16.
  • Turquoise Hill's cash and cash equivalents at September 30, 2017 were approximately $1.5 billion.

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.