Mongolia approves Rio Tinto's Oyu Tolgoi copper-gold complex
26 Aug 2009
Mongolia has cleared the way for global mining giant Rio Tinto's mining investment in the country's South Gobi region.
The Mongolian parliament has approved amendments to four laws that clear the way for the finalisation of Rio Tinto's investment agreement for the Oyu Tolgoi copper-gold complex in Mongolia's South Gobi region.
Rio Tinto and Ivanhoe Mines Ltd, the development partners for the project, expect to formally sign the agreement with the government of Mongolia at n early date.
Investment in the Oyu Tolgoi project through its shareholding in Ivanhoe Mines Ltd is in keping with Rio Tinto's strategy of focusing on large-scale, long-life, low-cost assets.
Rio Tinto said in a statement that it expects to commence production as early as 2013 with an approximate five-year ramp-up to full production. Average production capacity of the mine over its lifetime is expected to be 450,000 tonnes of copper per year and 330,000 ounces of gold.
Tom Albanese, chief executive, Rio Tinto said, "This is an important milestone in bringing onstream one of the finest undeveloped copper-gold projects in the world. The Investment Agreement is also a landmark for the future development of Mongolia's resources industry.
