Rio Tinto’s updated feasibility study (OTFS20) for Oyu Tolgoi mine expansion estimates a delay of 21-29 months for first sustainable production from the earlier schedule provided in 2016. The OTFS20 will add $1.5-1.8bn to the original estimated development capital of $5.3bn.
The miner is in the process of submitting this updated study to the Government of Mongolia, as per a statement. The company in the statement also suggests the COVID-19 pandemic could lead to further delays or increase capital costs.
After the geological hazard assessment, the company also suggests a likelihood of the total copper production reducing by 11pc from the earlier estimates. The company, in its result, had suggested addition to expansion cost by $1.5bn in its quarterly results in May. In this recent report, the miner has confirmed cost estimates and schedule.