Oyu Tolgoi Project (Update 2): Construction budget in 2010 will be $758 million

Dec 23 • Business, Companies, Mining • 518 Views • No Comments on Oyu Tolgoi Project (Update 2): Construction budget in 2010 will be $758 million

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Oyu Tolgoi Joint Technical Committee of Rio Tinto and IMMI approved the total investment of 2010 as $758 million. This budget is planned for the following works:

  • Resumption of the sinking of the 10-metre-diameter Shaft #2, which will be used to hoist ore to the surface from the deep, underground, copper-gold-rich Hugo Dummett Deposit.
  • Construction of a 97-metre-tall (approximately 31 storeys), reinforced-concrete head frame for Shaft #2.
  • Pouring the concrete foundation for the 100,000-tonne-per-day concentrator and deliveries of building materials for the concentrator and infrastructure.
  • Installation of a 20-megawatt power station and 35-kilovolt distribution system.
  • Initial earthworks for the open-pit mine at the Southern Oyu deposits.
  • Continuation of lateral underground development off Shaft #1 at the Hugo Dummett Deposit.
  • Construction of a 105-kilometre highway link to the Mongolia-China border, which will be fully paved by the time production begins.
  • Construction of a regional airport, with a concrete runway to accommodate Boeing 737-sized aircraft.

Ivanhoe Mines’ present consolidated cash position is approximately US$1 billion. Mr. Macken said additional funds are expected during 2010 either from Rio Tinto’s exercise of Series A warrants, priced at US$8.38-$8.54 and yielding US$385-$393 million, or through potential investments in Ivanhoe by one or more strategic shareholders, including sovereign-wealth funds, that have expressed unsolicited interest in participating in Ivanhoe’s growth opportunities.

source: www.ot.mn

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