Oyu Tolgoi Mine Project Given Green Light
It is reported in various news articles that following protracted negotiations between the Mongolian Government, Rio Tinto and Ivanhoe Mines, agreement was reached and signed on the 6th October 2009 to proceed with developments for the extraction of copper and gold.
Over its projected 45 year life, the mine is calculated to yield over 22 million tonnes of copper and 1800 tonnes of gold, needing a capital cost of US$ 7.3 billion. It will be the largest development project and largest foreign investment in the history of Mongolia and one of the largest copper-gold mine developments in the world. It will have a tremendous impact on Mongolia's economy, employ thousands of Mongolians and have major positive economic effects on the supply chain nationwide. It is understood from various news reports that the plant will start operations and exportation beginning in 2013 with a five year ramp up to full expected production of 450,000 tonnes of copper per year and 330,000 ounces of gold.
Oyu Tolgoi, also known as Turquoise Hill, is located in the south Gobi province of Umnogobi , approximately 550 km due south of Ulaanbaatar, 235 km east of the province capital, Dalanzadgad and 80 km north of the Mongolian border with China, a region often (and for some, confusingly) referred to as Inner Mongolia.
Road access to the mine follows a well-defined track directly south from Ulaanbaatar requiring 12 hours of road travel time. An airstrip capable of accommodating small aircraft is located on site. The Trans-Mongolian Railway that links Mongolia to Russia and China lies 360 km east of the property. The Trans-China Rail line following the Yellow River is approximately 160 km south of the border.
Why on October 6 ?
Robert Friedland, Ivanhoe chairman, said "It is appropriate that the Mongolian Government carefully considered the symbolic significance of staging the signing on October 6, traditionally an auspicious day for new beginnings"
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It is reported in various news articles that following protracted negotiations between the Mongolian Government, Rio Tinto and Ivanhoe Mines, agreement was reached and signed on the 6th October 2009 to proceed with developments for the extraction of copper and gold.
Over its projected 45 year life, the mine is calculated to yield over 22 million tonnes of copper and 1800 tonnes of gold, needing a capital cost of US$ 7.3 billion. It will be the largest development project and largest foreign investment in the history of Mongolia and one of the largest copper-gold mine developments in the world. It will have a tremendous impact on Mongolia's economy, employ thousands of Mongolians and have major positive economic effects on the supply chain nationwide. It is understood from various news reports that the plant will start operations and exportation beginning in 2013 with a five year ramp up to full expected production of 450,000 tonnes of copper per year and 330,000 ounces of gold.
Oyu Tolgoi, also known as Turquoise Hill, is located in the south Gobi province of Umnogobi , approximately 550 km due south of Ulaanbaatar, 235 km east of the province capital, Dalanzadgad and 80 km north of the Mongolian border with China, a region often (and for some, confusingly) referred to as Inner Mongolia.
Road access to the mine follows a well-defined track directly south from Ulaanbaatar requiring 12 hours of road travel time. An airstrip capable of accommodating small aircraft is located on site. The Trans-Mongolian Railway that links Mongolia to Russia and China lies 360 km east of the property. The Trans-China Rail line following the Yellow River is approximately 160 km south of the border.
Why on October 6 ?
Robert Friedland, Ivanhoe chairman, said "It is appropriate that the Mongolian Government carefully considered the symbolic significance of staging the signing on October 6, traditionally an auspicious day for new beginnings"
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