Trafigura agrees off-take deal for Oyu Tolgoi mine

* Trafigura to provide financing for huge Mongolia mine
* Gets long-term deal to buy output
* Majority mine owner Rio Tinto wrangling with Mongolia on expansion
By Eric Onstad
LONDON, Dec 16 (Reuters) - Commodity trader Trafigura has agreed to provide financing for the massive Oyu Tolgoi mine in Mongolia in exchange for a long-term deal to buy an undisclosed portion of the output, it said on Monday.
Rio Tinto , majority owner and operator of Oyu Tolgoi, one of the world's largest copper and gold mines, has spent months wrangling with the Mongolian government about plans to expand from an open pit into an underground operation.
Trafigura, which markets a wide range of metals including copper concentrate, referred to the off-take deal in its first fully public annual report since being set up 20 years ago.
"We also provide finance in exchange for long-term supplies. For instance, we recently signed an off-take agreement with Oyu Tolgoi in Mongolia," it said, giving no further details.
Rio Tinto had no immediate comment on the Trafigura deal.
Rio put the mine's $5 billion expansion on hold in July, saying the Mongolian government wanted parliament to approve the project's financing. Mongolia hoped to resolve the dispute by early 2014, a government source told Reuters last month.
Fifteen banks that have agreed to finance the expansion have told Rio they will extend their commitments, which were due to expire at the end of the year, until next March, a statement said on Monday.
Trafigura also said the global copper market is expected to be broadly in balance next year as low inventories and a recovery in global growth offset stronger mine output.
"We don't expect prices to rise markedly, but on the other hand, with concentrates trading at close to cost levels for some producing areas, a collapse in prices is also unlikely," the Trafigura report said.
The benchmark copper price on the London Metal Exchange has shed 8.3 percent this year, weighed down by more output from new mines such as Oyu Tolgoi and improved operations at many existing mines.
The global copper market is expected to widen its surplus next year to 328,000 tonnes from 182,000 tonnes this year, analysts polled by Reuters said in October.


Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Israel Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Kyrgyzstan Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and US Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive