Rio Tinto signs deal for electricity supply to Oyu Tolgoi mine

5th Nov 2012 10:55

Mining titan Rio Tinto has signed a binding agreement with a Chinese power company for the supply of electricity to Oyu Tolgoi, the nearly-completed copper and gold mine in Mongolia. As a result, within the next few weeks Oyu Tolgoi will start a seven-week commissioning of the ore-processing equipment. The firm believes that first concentrate production will follow within one month and the commencement of commercial production is expected three to five months after that. Rio Tinto´s Copper Chief Executive Andrew Harding said: "This agreement means we are on track to bring the first phase of the world-class Oyu Tolgoi mine into production in the first half of 2013. When fully developed it will be a top-five copper producer with significant gold production. "Rio Tinto and its partners have invested almost $6bn in this vast project, completing it in only 28 months. We have trained and employed thousands of Mongolians and Oyu Tolgoi will be a vital contributor to Mongolia's economic development." The firm added that Oyu Tolgoi has built a power line from the mine to the town of Khanbogd, which will provide the community with access to around-the-clock electricity for the first time. NR