Q3 2024 PERFORMANCE RESULTS
Key Achievements:
“100 million tree” programme
- Within the framework of the national “One Billion Trees” movement, Oyu Tolgoi is working towards its commitment to plant 100 million trees. Fully equipped 3 tree nurseries have been established in local communities - Tsogt-Ovoo and Khanbogd soums in Umnugovi province and handed over to the local authorities. The Tsogt-Ovoo nursery has a capacity of producing 500,000 saplings annually, while the Khanbogd facility can produce 250,000 saplings per year.
- The “100 Million Trees” initiative goes beyond tree planting. It includes significant investments in forestry infrastructure, specialist training, and sector strengthening. Within this frame, Oyu Tolgoi organized the “Gobi: A Green Future to Combat Desertification” workshop in Dalanzadgad, Umnugovi involving over 160 specialists from four provinces, focusing on vegetation and reforestation practices in the Gobi region.
- Oyu Tolgoi awarded its 1,130th scholarship last Friday. Since 2010, a total of 1,130 scholarships have been granted to young Mongolians through the Foreign, Domestic, and Goviin Oyu Scholarship programmes with 40 scholarships awarded last Friday. supporting the future leaders of Mongolia.
- Oyu Tolgoi, in collaboration with the German-Mongolian Institute for Resources and Technology, organized a STEM summer program for high school students in Umnugovi province. The program aimed to enhance students' scientific knowledge and inspire them to pursue careers in engineering fields.
- The General Authority for Education and Oyu Tolgoi teamed up to host the annual “Crushing on Your Profession” event in Bulgan and Murun, designed to guide senior students in exploring career options and help them make informed decisions about their futures.
- The "Gerelt" project, funded by Oyu Tolgoi, has commenced its 2024-2025 academic year initiatives aimed at promoting youth health. This year's program focuses on enhancing the skills of psychologists from previously selected schools, establishing a new Jiu-Jitsu club in Bayanzurkh district, and supporting the ongoing activities of existing clubs in both Songinokhairkhan and Bayanzurkh districts. To date, the project has impacted 23,656 individuals, set up model counseling rooms in 17 schools, established 17 health clubs, and trained 260 peer counselors
- A foundation stone was laid for a new sports complex in Khanbogd soum, funded by the Oyu Tolgoi Catalyst Fund. This modern facility, designed to accommodate 500 people at a time, will greatly enhance the quality of life for local residents and Oyu Tolgoi employees.
- The renovation of Galba Park in Khanbogd soum is complete, transforming a 5-hectare area into a vibrant public space featuring green space, with a 300-car parking lot, a fountain, and modern sanitation facilities.
- The construction work for 7.96 km of inter-soum paved road with sidewalks, bike lanes, and a surface water drainage system in the center of Khanbogd soum is 97% complete.
- Oyu Tolgoi Catalyst Fund in collaboration with the European Bank for Reconstruction and Development has launched a programme in Khanbogd soum aimed at strengthening small and medium enterprises (SMEs). As part of this initiative, soft loans are being provided through XacBank for SMEs.
- At the Mongolia Mining 2024 event, hosted by MineX Mongolia, Oyu Tolgoi was recognized as the "Best Mining Operations and Safety Technology" award for its outstanding commitment to high standards in workplace safety.
- Ambassador Batsukh Galsan, who served as Chairman of the Oyu Tolgoi Board of Directors for 15 years, has officially stepped down, passing his responsibilities to newly appointed Chairman Sean Hinton. Mr. Hinton, a dual UK-Australian citizen, brings a wealth of experience from his time living and working in Mongolia, along with substantial expertise in international business and sustainable investment.
- Ventilation shafts in the north and south, among the largest globally, were successfully completed, playing a critical role in underground mine ventilation and paving the way for full production. This is a significant milestone in the project.
- Construction works for the concentrator expansion is ongoing. Commissioning is expected to be progressively completed from the fourth quarter of 2024 through to the second quarter of 2025.
- Construction of primary crusher 2 is progressing to plan and remains on track to be completed by the end of 2025.
- Negotiations to renew the Collective Labour Agreement has begun in Q3 between Oyu Tolgoi LLC, Oyu Tolgoi LLC’s Mining Employees’ Trade Union, and Oyu Tolgoi LLC’s Local Employees' Trade Union. The negotiation process is ongoing, and the current agreement will expire in April 2025.
- Prioritizing safety, we achieved our goal by maintaining an All-Injury Frequency Rate of 0.17 per 200,000 people/hours worked.
- Globally, an average of 1.2 cubic meters of water is used to process one ton of ore. However, at Oyu Tolgoi, less than 0.55 cubic meters of water is used per ton of ore (in Q3 2024, 0.37 cubic meters).
- 2% of the total workforce consists of domestic employees, and 23.6% of all employees are women.
- Since 2010, we have paid a total of USD 18.4 billion in taxes and fees, which includes VAT paid to Mongolian suppliers.
- As of the third quarter, we collaborated with 917 suppliers, 609 of which were local, spending 90% of our operational procurement on these national suppliers.
- Q3 2024 Performance Scorecard can be viewed here.
- Mined copper production increased 19% from the third quarter of 2023 due to both the ramp-up in production, and higher-grade ore at the underground mine. However, production was 5% lower than the previous quarter mainly due to planned maintenance at the concentrator and adverse weather impacting open pit operations.
- We have opened a total of 120 draw bells from Panel 0 of the underground mine, including six during the quarter. During the quarter, we delivered 1.5 million tonnes of milled ore from the underground mine at an average copper grade of 2.05% and 7.4 million tonnes from the open pit with an average grade of 0.39%. The ramp-up remains on track to reach 500 thousand tonnes of copper per year (100% basis and stated as recoverable metal) for the underground and open pit mines for the years 2028 to 2036.
| Q1, 2024 | Q2, 2024 | H1, 2024 | Q3, 2024 | |
| Ore Treated – consolidated (‘000 tonnes) | 10,323.33 | 10,816.57 | 21,139.89 | 8,872.83 |
| Ore Treated – OP (‘000 tonnes) | 9,010.65 | 9,284.01 | 18,294.66 | 7,352.01 |
| Ore Treated – UG (‘000 tonnes) | 1,312.68 | 1,532.56 | 2,845.23 | 1,520.82 |
| Average mill head grades (consolidated): | ||||
| Copper (%) | 0.55 | 0.61 | 0.58 | 0.67 |
| Gold (g/t) | 0.22 | 0.24 | 0.23 | 0.28 |
| Silver (g/t) | 1.50 | 1.64 | 1.57 | 1.62 |
| Average mill head grades (Open pit) : | ||||
| Copper (%) | 0.39 | 0.37 | 0.38 | 0.39 |
| Gold (g/t) | 0.19 | 0.17 | 0.18 | 0.22 |
| Silver (g/t) | 1.25 | 1.12 | 1.18 | 0.97 |
| Average mill head grades (Underground) : | ||||
| Copper (%) | 1.67 | 2.02 | 1.86 | 2.05 |
| Gold (g/t) | 0.42 | 0.62 | 0.53 | 0.61 |
| Silver (g/t) | 3.28 | 4.75 | 4.07 | 4.76 |
| Copper concentrates produced (‘000 tonnes) | 208.47 | 246.22 | 454.69 | 231.96 |
| Average concentrates grade (% Cu) | 22.11 | 21.34 | 21.69 | 21.57 |
| Production of metals in concentrates: | ||||
| Copper in concentrates (‘000 tonnes) | 46.08 | 52.54 | 98.62 | 50.03 |
| Gold in concentrates (‘000 ounces) | 42.75 | 46.88 | 89.64 | 50.39 |
| Silver in concentrates (‘000 ounces) | 310.78 | 362.66 | 673.44 | 324.58 |
| Sales of metals in concentrates: | ||||
| Copper in concentrates (‘000 tonnes) | 43.74 | 48.29 | 92.02 | 43.62 |
| Gold in concentrates (‘000 ounces) | 41.52 | 43.26 | 84.78 | 42.12 |
| Silver in concentrates (‘000 ounces) | 271.85 | 316.56 | 588.41 | 272.98 |
| Open pit material mined (‘000 tonnes) | 22,703.44 | 21,086.47 | 43,789.91 | 20,069.37 |
| Concentrate sold in DMT | 208.50 | 236.30 | 444.81 | 216.07 |
| Metal recovery (%) | ||||
| Copper | 80.22% | 80.89% | 80.57% | 81.42% |
| Gold | 56.98% | 57.25% | 57.11% | 58.77% |
| Silver | 61.83% | 64.43% | 63.21% | 65.08% |