| Oyu Tolgoi | |
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Number 1 Shaft at Oyu Tolgoi |
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Oyu Tolgoi
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| Location | Oyu Tolgoi |
| Amaig | Ömnögovi |
| Country | Mongolia |
| Owner | |
| Company | Ivanhoe Mines Mongolia Inc |
| Website | www.ivanhoemines.com |
The Oyu Tolgoi mine (Mongolian: Оюу Толгой, also Oyuu Tolgoi, Turquoise Hill) is a combined open pit and underground mining project in Khanbogd sum within the south Gobi Desert, approximately 235 kilometres (146 mi) east of the Ömnögovi Province capital Dalanzadgad. The site was discovered in 2001 and is being developed as a joint venture between Ivanhoe Mines, Rio Tinto and the Government of Mongolia. The mine is under construction as of 2010 and scheduled to begin production in 2013.
The Oyu Tolgoi mining project is the largest financial undertaking in Mongolia's history and is expected upon completion to account for more than 30% of the country's gross domestic product. Copper production is expected to reach 450,000 tonnes (500,000 short tons) annually. Financing for the project has come in part from the Rio Tinto Group and an investment agreement between Ivanhoe Mines and the government of Mongolia.
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Canadian-based Ivanhoe Mines discovered the gold-copper ore deposit in 2001 in the Gobi Desert of Mongolia. It is in an area known as Oyu Tolgoi (Mongolian for Turquoise Hill),[1] where in the time of Genghis Khan outcropping rocks were smelted for copper.[2] By 2003 there were 18 exploration drill rigs on the property employing approximately 200 people, and Oyu Tolgoi was the "biggest mining exploration project in the world."[1]
The Oyu Tolgoi mine is in the South Gobi Desert of Mongolia, 80 kilometres (50 mi) north of Mongolia's border with the People's Republic of China, where the mined copper is expected to be shipped.[2] The Oyu Tolgoi deposits contain (as of 2010) 79 billion pounds (35,833,000 tonnes) of copper, and 45 million ounces (1,275,000,000 grams) of gold.|[3] Production is scheduled to begin in 2013 and to reach full capacity in 2018. Over the anticipated life of mine (45 years), Oyu Tolgoi is scheduled to produce 450,000 tonnes (500,000 short tons) of copper per year, an amount equal to 3% of global production. Oyu Tolgoi is also expected to produce 330,000 ounces of gold annually.[4][5]
Oyu Tolgoi will use both underground and open pit mining techniques. Initially the mine will produce 70,000 tonnes per day, ramping up to 85,000 tonnes per day with ore from both the open pit and the underground mine (underground mining is to be done by block caving). The yield from the first phase of mining will be ground through one semi-autogenous grinding mill (SAG mill). Expansion to new underground areas will result in an additional ramp up to 140,000 tonnes per day, with possible expansion to 170,000 tonnes per day.[6]
As of 2010, the estimated costs for bringing the Oyu Tolgoi mine into production was US$4.6 billion,[7] making it (financially) the largest project in Mongolian history.[8] The mine will account for more than 30% of the Mongolian GDP.[6] In early 2010 global mining company Rio Tinto owned 22.4% of Oyu Tolgoi owner Ivanhoe Mines, and gave both technical assistance and financial support to the project. At the time Rio Tinto had the option of increasing their stake to 46.6%. On 31 March 2010 the Government of Mongolia approved an investment agreement where they would purchase 34% of the project.[9] In October 2010, Ivanhoe announced a new US$1 billion share offering in order to raise funds to develop this mine.[10] Rio Tinto increased its ownership of Ivanhoe in December 2010, also assuming direct management of the design and construction of the project, however without fulfilling another aim, to achieve direct ownership of the mine.[11][12]