Rio Tinto Says Mongolia Copper Mine Cost Up by Roughly $300M

By Rhiannon Hoyle

Rio Tinto PLC stated it’ll value roughly US$300 million greater than beforehand anticipated to develop the underground mine at its Oyu Tolgoi copper operation in Mongolia, citing disruptions due to the Covid-19 pandemic.

The mining firm stated a revised value and schedule forecast was accomplished in June that put the whole project-cost estimate at US$7.06 billion, larger than its so-called 2020 definitive estimate of round US$6.75 billion. The determine is underneath overview by the Oyu Tolgoi board and assumes there are not any additional Covid-19-related disruptions, the miner stated.
It additionally stated that whereas progress has been made on the challenge’s shafts 3 and 4, which have been delayed on account of pandemic restrictions, each shafts are actually anticipated to be commissioned within the first half of 2024. That’s 15 months later than the 2020 definitive estimate, larger than expectations of a nine-month delay introduced final yr.

                        

                

					

                     
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Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com