- Strong safety and production performance
- US$171.5 million taxes paid over the quarter
- US$210 million in national procurement spend
- Oyu Tolgoi’s total in-country spend has reached US$5.9 billion at the end of Q3
Oyu Tolgoi LLC today announced its financial results for the quarter ended September 30, 2016, and released its latest Performance Scorecard.
- Oyu Tolgoi achieved an excellent safety performance, with a consolidated All Injury Frequency Rate of 0.13 (Injuries per 200,000 hours worked including open-pit operations and the underground project), for the nine months ended September 30 2016.
- Good progress continued on underground development, including ongoing contractor mobilization and the signing of an additional contract for the sinking of Shafts 2 and 5. Work began for Shaft 5 sinking and the convey-to-surface box cut excavation while construction of critical on-site facilities continued.
- At the end of Q3’16, Oyu Tolgoi had spent $105.8 million on underground expansion capital and had commitments of more than $750 million.
- At the end of Q3’16, the underground workforce was approximately 1,600 and is expected to reach 2,400 people by the end of 2016.
- Oyu Tolgoi recorded revenue of $226.3 million in Q3’16, a decrease of 31.4 per cent over Q2’16, primarily reflecting reduced gold sales as a result of lower gold production.
- Oyu Tolgoi set an all-time high in Q3’16 for quarterly material mined of more than 25 million tonnes.
- Copper production in Q3’16 declined 9.9 per cent over Q2’16, as a result of lower metallurgical recoveries from the new Phase 6 ore.
- As expected, gold production in Q3’16 declined 47.1 per cent over Q2’16 due to lower grades from the completion of major mining activities in Phase 2.
- Sales contracts have been agreed for 100 per cent of Oyu Tolgoi’s expected 2016 and 2017 concentrate production.
- On October 21, 2016, Turquoise Hill filed the updated Oyu Tolgoi Technical Report.
Oyu Tolgoi’s Managing Director, Armando Torres, said, “The business continued to deliver strong safety performance over the past quarter, and at the same time achieving record material mined and continuing underground development.”
Q3’16 Performance Scorecard
Oyu Tolgoi’s total in-country spend has reached US$5.9 billion at the end of Q3 – demonstrating a very strong commitment to local content in both operations and underground development.
The company’s environment performance continues to be significantly better than the global average, rating 0.477 cubic metres of water per tonne of ore processed and 84.9 per cent recycling rate on average during the quarter.
Please click here to see the Scorecard.
Good progress continued during Q3’16 on underground development, including ongoing contractor mobilization. At the end of Q3’16, Oyu Tolgoi had spent $105.8 million on underground expansion capital and had commitments of more than $750 million. During Q3’16, work began for Shaft 5 sinking and the convey-to-surface box cut excavation while construction of critical on-site facilities continued. Oyu Tolgoi recently signed an additional underground mining and support services contract with Dayan Contract Mining, a joint venture between Hasu Megawatt and Redpath, for the sinking of Shafts 2 and 5. At the end of Q3’16, the underground workforce was approximately 1,600 people and is expected to reach 2,400 people by the end of 2016.
Sales contracts have been agreed for 100 per cent of Oyu Tolgoi’s expected 2016 and 2017 concentrate production.
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.