Underground development of Oyu Tolgoi to start in June 20162015-08-31 02:55:42
Oyu Tolgoi has submitted its renewed Feasibility Study of 2015 to the Minerals Council of Mongolia. Ministry of Mining reported that the previous FS and the renewed FS in accordance with the Underground Development Plan will be discussed for approval in near future.
According to the sources, month of September will be the appointment of the third BD member from Mongolian side. Moreover, studies of the Tavan Tolgoi power plant and copper smelting will be done. The plan states that the investments of USD 6 billion required for the project are to be raised in December and the official start of the underground development in June next year after the sides such as Oyu Tolgoi, Turquoise Hill Resources, Rio Tinto will approve the underground development in coming April of 2016.
As the Turquoise Hill Resources reported the necessary preparatory works plan have been approved. According to the Underground Development Plan approved last May USD 4.7 billion out of total USD 6.8 billion to be invested into Oyu Tolgoi within the seven years period are to be dedicated to the underground development.
The rest of the budget is to be directed at related costs and tax costs. Shareholders have approved the total of USD 9 billion of investments into Oyu Tolgoi Mongolia within the seven years, of which USD 300 million investments are coming within 2015.