Mongolia laments Rio Tinto s diminished Oyu Tolgoi project
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The Mongolian Government has expressed great concern at the diminished prospectivity of Rio Tinto s Oyu Tolgoi copper project, after the multinational miner delivered its final verdict on the size of its cost and schedule blow outs.
Rio announced on Wednesday evening that work to triple production of copper at Oyu Tolgoi would cost $US6.75 billion ($9 billion), a disclosure that means the project cost has blown out by $US1.45 billion.
Sustainable first production will be achieved in October 2022, close to 22 months later than was envisaged when the project was launched in 2015.
Wednesday s forecast was Rio s definitive estimate of the blow outs and comes 26 months after first indications were given to investors that the project was not going to plan because of weaker than expected geology and project management issues.