Rio Tinto Group and its partners have approved the plan of expansion of financing of the Mongolian Oyu Tolga mine within which the iron ore giant will become one of the world’s largest suppliers of copper, Bloomberg reports.
The company will invest 5,3 billion dollars in mining. We will remind that at the end of last year the British-Australian concern has attracted $4,4 billion from 15 banks and investment funds with the same purposes.
Work on the project will begin in the middle of this year, and the first copper ore from the field which is planned to be developed in the underground way of production, is expected by 2020. And from the 2027th when the mine, being in the Gobi Desert, near border with China, reaches full production capacity, he will produce 500 thousand metric tons of copper annually that 3 times more, than now.
After the statement of the management of the company on Thursday, the stock Turquoise Hill Resources Ltd., which possesses 66% of the Mongolian field, have jumped up for 8,7 percent to $3,74 apiece at the exchange in Toronto. In turn, Turquoise Hill through the 51 percent equity stake operates Rio Tinto.
The edition writes that within construction of the mine it is planned to lay 125 miles of underground tunnels up to 1,2 km in depth. Deeply underground, by Rio Tinto estimates, about 80% of field reserves which after the beginning of full production will become the third largest source of copper ore in the world lie.
Rio Tinto criticize recently for dependence on extraction of iron ore, the price to which in December, 2015 has fallen to a ten-year minimum. In recent years the company has spent billions of dollars for expansion of the network of iron ore pits and infrastructure in Australia.
Copper prices continue to fall, however, according to forecasts of the CEO of Rio Tinto Jean-Sebastien Jacques too, copper of the earlier others will recover from falling of the prices, and within 2-3 years there can come the deficiency of raw materials for production of this non-ferrous metal.