Rio Tinto Says Mongolia Copper Mine Cost Up by Roughly $300 Million
15 July 2022 - 11:14AM
Dow Jones News
By Rhiannon Hoyle
Rio Tinto PLC said it will cost roughly US$300 million more than
previously expected to develop the underground mine at its Oyu
Tolgoi copper operation in Mongolia, citing disruptions because of
the Covid-19 pandemic.
The mining company said a revised cost and schedule forecast was
completed in June that put the total project-cost estimate at
US$7.06 billion, higher than its so-called 2020 definitive estimate
of around US$6.75 billion. The figure is under review by the Oyu
Tolgoi board and assumes there are no further Covid-19-related
disruptions, the miner said.
It also said that while progress has been made on the project's
shafts 3 and 4, which were delayed due to pandemic restrictions,
both shafts are now expected to be commissioned in the first half
of 2024. That is 15 months later than the 2020 definitive estimate,
greater than expectations of a nine-month delay announced last
year.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
July 14, 2022 20:59 ET (00:59 GMT)
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