Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Global mining conglomerate Rio Tinto has enhanced its daily ore production capacity to 25,000mt in Phase 1 and has targeted up to 95,000mt per day after installing a C2S conveyor line at its Oyu Tolgoi copper mine.


Batbayar Batsukh, the underground engineer at Oyu Tolgoi in Mongolia, noted to the media on Aug 30 that the enhanced capacity will speed up transporting red metal ore by 23pc. C2S is noted to give direct access to the underground pit.


Rio Tinto has been developing Oyu Tolgoi since 2016 and in a bid to speed up returns, the company has also proposed cutting loan rates to the Mongolian government in exchange for cutting through bureaucratic red tape. 


The report also includes a multi-year power agreement so Rio Tinto can achieve its 2022 production target, noted media reports on Monday.


Oyu Tolgoi has been riddled with delays in its expansion due to legislative and operational issues. Although its co-owner Turquoise Hill reported 0.5pc more copper output in Q2 this year, the company had to lower its overall production guidance for 2021. 


Rio Tinto and Turquoise Hill were also involved in a prolonged standoff that was resolved through an agreement in April this year.

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