Mr D Garamjav discovered this6 Nov 2015 11:44
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Oyu Tolgoi is one of the most exciting developments in copper and gold mining for several decades. As well as containing reserves and resources that make it one of the world's largest copper-gold deposits, Oyu Tolgoi will have a transformative effect on the nation and the people of Mongolia and is an important long term partnership with the Government of Mongolia. By the time it reaches full production in 2021, the International Monetary Fund estimates that Oyu Tolgoi will generate up to a third of Mongolia's GDP.
Oyu Tolgoi is situated in the southern Gobi desert of Mongolia, approximately 80 kilometres north of the Mongolia-China border and 550 kilometres south of the capital, Ulaanbaatar. It is jointly owned by the Government of Mongolia (34 per cent) and Turquoise Hill Resources (66 per cent, of which Rio Tinto owns 51 per cent). Since 2010, Rio Tinto has also been the manager of the Oyu Tolgoi project.
The first major discoveries were made at Oyu Tolgoi in 2001. Estimates indicate that Oyu Tolgoi contains 2.7 million tonnes of recoverable copper and 1.7 million ounces of recoverable gold in reserves. The scale of deposits at Oyu Tolgoi is expected to allow the project to operate for over 50 years.
Oyu Tolgoi is expected to produce an average of 430,000 tonnes of copper and 425,000 ounces of gold per year, as well as by-product silver and molybdenum, over its mine life. Ore from Oyu Tolgoi will be processed into concentrate on-site and, in its initial years, shipped by road to international markets.
On 9 July 2013, Oyu Tolgoi reached a major milestone when shipping commenced with trucks carrying copper concentrate leaving the mine gates bound for customers in China. The 100,000 tonne-per-day concentrator began processing ore at the beginning of 2013, from Oyu Tolgoi’s open pit. The underground section of the mine, which is expected to be developed in the next phase of the project, contains up to 80 per cent of the value of the project.
Sustainable development
The benefits of Oyu Tolgoi for the Mongolian economy are significant. Since 2006, Rio Tinto and Turquoise Hill Resources have invested approximately US$6.2 billion in the first stage development of the project.
During operations, Oyu Tolgoi is committed to employing a minimum 90 per cent Mongolian workforce, a huge jobs boost for a country with a population of only three million.
By the end of June 2013, Oyu Tolgoi had paid over US$1.1 billion in taxes, fees and other payments to the Government of Mongolia. It created more jobs than any other company in Mongolia, and was the second highest taxpayer in the country in 2012. The benefits for Mongolia will be even greater now that shipments have commenced as royalty payments and increased income from taxation flow to the government.
Rio Tinto is proud to be working with its partners to introduce world-class standards of safety, transparency and technology at Oyu Tolgoi.
Training and education
Oyu Tolgoi is