Oyu Tolgoi today announced an update on its production for the second quarter of 2015.
- Strong safety performance: All Injury Frequency Rate of 0.22 year-to-date, per 200,000 hours worked
- Improved concentrate production in Q2 vs Q1 2015; highest ever since operations began
- Underground Mine Development and Financing Plan signed between shareholders
- Oyu Tolgoi marked its second anniversary of export commencement on 9 July
Concentrate production for Q2’15 increased 64.6 per cent over Q1’15 due to a 20.1 per cent increase in throughput and higher head grades. Throughput for Q2’15 was the best Oyu Tolgoi has achieved since operations began. Copper and gold in concentrates increased 64.5 per cent and 178.1 per cent respectively over Q1’15.
Andrew Woodley, President and CEO – Oyu Tolgoi, said, “We have continued our strong safety performance in Q2’15, among the best in our peer group. We matched this with a strong production performance over the quarter, achieving the highest concentrate production since operations began, on the back of increased throughput and high ore grades as the mine accessed the high-grade zone.
“Q2’15 also saw the signing of the Underground Mine Development and Financing Plan – a landmark agreement that sets out a clear road map to develop underground, where approximately 80 per cent of Oyu Tolgoi’s potential lies.
“More recently, Oyu Tolgoi on 9 July marked its two year anniversary of commencement of shipment – a major milestone, and one that marks our progress towards becoming a globally competitive copper business.”
Oyu Tolgoi began accessing higher-grade material in Q2’15. Production of higher-grade ore is expected to continue in the second half of 2015. Turquoise Hill continues to expect Oyu Tolgoi to produce 175,000 to 195,000 tonnes of copper and 600,000 to 700,000 ounces of gold in concentrates in 2015.
A planned two-week concentrator maintenance shutdown is currently underway at Oyu Tolgoi.Following the signing of the Underground Mine Development and Financing Plan in May, Turquoise Hill and Rio Tinto are advancing project financing and updating the underground feasibility study. Turquoise Hill expects signing of project financing by the end of 2015.
Oyu Tolgoi Production Data
All data represents full production and sales on a 100 per cent basis
About Oyu Tolgoi LLC (www.ot.mn)
Oyu Tolgoi LLC, Mongolia's largest copper and gold mining company, is a strategic partnership between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Located in the South Gobi, Oyu Tolgoi commenced shipment of product to customers in July 2013. Oyu Tolgoi is managed by Rio Tinto, which is investing global expertise and cutting-edge technology to help develop Mongolia’s mining industry and ensure Oyu Tolgoi is one of the world’s most advanced mines. For Oyu Tolgoi, nothing matters more than safety. The business operates under the principle that if a job cannot be done safely, it will not be done at all.