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BRIEF-Rio Tinto Says Oyu Tolgoi Underground Expected To Achieve Sustainable Production by Oct 2022

Published 2020-12-16, 02:26 a/m
© Reuters.
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Dec 16 (Reuters) - Rio Tinto (LON:RIO) Ltd RIO.AX :

* DEVELOPMENT CAPITAL AND TIMELINE FOR OYU TOLGOI CONFIRMED-RIO.AX

* OYU TOLGOI IS EXPECTED TO PRODUCE 480,000 TONNES OF COPPER PER YEAR ON AVERAGE FROM 2028 TO 2036 FROM OPEN PIT AND UNDERGROUND

* ESTIMATE DETAILS HOW OYU TOLGOI UNDERGROUND TO ACHIEVE SUSTAINABLE PRODUCTION FOR PANEL 0 BY OCT 2022 FOR DEVELOPMENT CAPITAL OF $6.75 BILLION

* COMPLETED DEFINITIVE ESTIMATE WORK FOR PANEL 0 OF OYU TOLGOI UNDERGROUND PROJECT

* SUSTAINABLE PRODUCTION EXPECTED TO COMMENCE IN OCTOBER 2022

* ESTIMATE WORK FOR PANEL 0 CONFIRMING A REVISED BUDGET OF $6.75 BILLION WITH SUSTAINABLE PRODUCTION EXPECTED TO COMMENCE IN OCTOBER 2022

* AT PEAK PRODUCTION, OYU TOLGOI TO OPERATE IN 1ST QUARTILE OF COPPER CASH COST CURVE; BY 2030 TO BE FOURTH LARGEST COPPER MINE IN WORLD

* RIO TINTO, THROUGH TRQ, IS PROVIDING COMPLETION SUPPORT UNDERTAKING IN RESPECT OF $4.4 BILLION PROJECT FINANCE FACILITY

* REMAINS OF VIEW THAT ALL SHAREHOLDERS SHOULD CONTRIBUTE PROPORTIONATELY AND SHARE EQUITABLY IN BENEFIT

* PANEL 1 & PANEL 2 CURRENTLY SUBJECT TO FURTHER STUDIES, WITH INITIAL RECOMMENDATIONS EXPECTED BY MID-2021

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