Government reports on OT’s production and operations

On December 19, a regular meeting ‘Hours of Construction’ was organized by the government. At the meeting, Oyu Tolgoi LLC’s production and operations were reported.

Giant concentrator at the Oyu Tolgoi mine site

“Oyu Tolgoi LLC commenced operations of its concentrator, which is capable of processing 100 thousand tons of ore a day, and made its first export of copper concentrate on July 9 2013. Within the past five months, 250 thousand tons of copper concentrate was extracted and 70 thousand tons were distributed through the Gants Mod border point of China. Roughly 20 thousand tons have been taken by smelters. According to the relevant agreement, Oyu Tolgoi LLC is thoroughly fulfilling its duties such as its working force, tax payments and contributions to national and local construction”, said D. Ganbold, Executive Director of Erdenes Oyu Tolgoi LLC.
At the regular meeting of the Board of Directors of ‘Oyu Tolgoi’ LLC this month, the company’s action plan and budget for 2014 were adopted. The project investment for next year was planned to be USD1.2 billion, while sales income will be USD2.6 billion. “In 2014, 690 thousand tons of copper concentrate is expected to be produced which is 200 thousand tons more than Erdenet Mining Corporation. So, Oyu Tolgoi LLC becomes the largest entity of Mongolia and contributes to about 20 percent of Mongolia’s economy”, he added. Among some 690 thousand tons of concentrate to be extracted from Oyu Tolgoi, there are 175 thousand tons of copper and 23 tons of gold.
Talks aiming to resolve the project’s pressing issues continued from October last year resulting in 21 of over 30 issues being resolved and the two sides reaching a mutual understanding. During the continuing talks, the sides are discussing cooperation conditions between the Mongolian government and investors for putting the mine into operation. Within the second quarter of next year, the revised Feasibility Study of the mine will be adopted and the mine will be put into operation.
Following this information, Prime Minister N.Altankhuyag provided important information for businessmen. “All remaining money from the Chinggis Bonds will be spent on encouraging production. USD34 million, or approximately Tgs360 billion, will be used to augment Mongolia’s export and fund the best production projects to replace imports”, said the PM.


Source: THE MONGOL MESSENGER