Rio Tinto, Mongolia Reach Agreement on Domestic Power Supply for Oyu Tolgoi
29 June 2020 - 9:01AM
Dow Jones News
By David Winning
SYDNEY--Rio Tinto PLC said it has reached agreement with
Mongolia's government on domestic power supply to the Oyu Tolgoi
copper mine.
Rio Tinto said Mongolia will fund and construct a state-owned
power plant at Tavan Tolgoi, the location of a large coal
deposit.
The revised Power Source Framework Agreement signals
construction of the coal-fired power plant should begin before July
1, 2021. Commissioning of the plant is then due to happen within
four years, Rio Tinto said.
"This agreement provides a potential pathway to securing a
domestic power supply for the Oyu Tolgoi mine and underground
project for the benefit of all shareholders and the wider
community," said Arnaud Soirat, Copper & Diamonds chief
executive.
Oyu Tolgoi currently uses imported power.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
June 28, 2020 18:46 ET (22:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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