Concentrator, Oyu Tolgoi

Oyu Tolgoi

Oyu Tolgoi is one of the largest known copper and gold deposits in the world. It is also one of the most modern, safe and sustainable operations in the world

Copper & Gold

Product

54.6Kt

Copper production (our share) /163.01Kt (100%)

≈34%

Ownership

2013

First production

SOUTH GOBI, MONGOLIA

Oyu Tolgoi, in the South Gobi region of Mongolia, is one of the largest known copper and gold deposits in the world. It is also one of the most modern, safe and sustainable operations in the world.

The Oyu Tolgoi underground development consolidates our position as a leading global producer of copper, a material essential for decarbonisation and electrification. When the underground is fully operational, it will be the fourth largest copper mine in the world.

Open pit mining began at Oyu Tolgoi in 2011 and the copper concentrator, the largest industrial complex ever built in Mongolia, began processing mined ore into copper concentrate in 2013. Current infrastructure at Oyu Tolgoi will allow the mine to operate for decades to come.

In January 2022, the Oyu Tolgoi Board approved the beginning of underground operations. This step unlocks the most valuable part of the mine, with sustainable underground production expected in the first half of 2023.

Oyu Tolgoi is jointly owned by the government of Mongolia, which has 34% ownership, and Rio Tinto, which owns 66%. Rio Tinto manages the operation on behalf of the owners.

Copper: Essential for a low-carbon future

At peak production, Oyu Tolgoi is expected to produce 500,000 tonnes1 per annum of copper – equivalent to what’s needed to build:

1,580

Wind turbines per day

16,400

Electric battery vehicles per day

1The 500ktpa target (stated as recovered metal) for the Oyu Tolgoi underground and open pit mines is underpinned 17 per cent by Proved Ore Reserves and 83 per cent by Probable Ore Reserves for the years 2028-2036. These production targets have been scheduled from current mine designs by Competent Persons in accordance with the requirements of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, 2012 Edition (the JORC code).

Innovation at Oyu Tolgoi

Most of the value lies deep underground and to reach the ore body we are building a world-class underground mine. It will include a state-of-the-art control room to oversee the operation that will have approximately 200 kilometres of tunnels.

5 Shafts

Deepest Reaching 1.3KM

5.5m x 5m

Average Tunnel Height & Width

We will use leading underground mining technology known as block caving to mine the ore body. Block caving is technically complex, but it is also one of the safest and most cost-effective methods of mining ore from deep below the ground as it uses the force of gravity.

Put simply, a void is created under the ore body, which then collapses gradually under its own weight. The ore passes through ‘funnels’ in the rock, known as draw points. A series of lateral tunnels over several levels are used to extract the ore and to haul it for crushing before it is transported to the surface via shaft or conveyor belt.

On 16 December 20201, we confirmed the definitive estimate of cost and schedule for Panel 0 with sustainable production expected to commence in October 2022 and development capital of $6.75 billion. These estimates include the known impacts of COVID-19.

At Oyu Tolgoi, we are using technology to build a connected mine and keep our people safe. We are installing a wireless network to connect our people and equipment underground with the teams on the surface. All team members have a Personal Location Indicator, which allows us to track their whereabouts, providing critical information during an emergency. Similar sensors allow us to track the location and performance of all equipment and we have real time monitoring of atmospheric conditions. The team in Mongolia are supported by the Rio Tinto Underground Mining Centre, which connects our caving experts in the Brisbane hub with our operations team at Oyu Tolgoi. These groups work together to improve safety and productivity performance by using the vast amount of data being collected.

1Project baseline reporting has been updated following endorsement of the definitive estimate by Rio Tinto Board and Turquoise Hill Resources (pending Oyu Tolgoi board approval). The definitive estimate assumed COVID-19 restrictions in 2021 that were no more stringent than those experienced in September 2020 and noted that should COVID-19 constraints continue beyond 2021 or should the COVID-19 situation escalate further in 2021 leading to tougher restrictions, additional costs and schedule impacts will arise. Since the definitive estimate, at the end of 2020, Mongolia implemented additional restrictions in response to community transmission cases, and in March 2021 the first cases of COVID-19 were identified at Oyu Tolgoi resulting in temporary site shutdown, quarantine measures and further travel and movement restrictions. The impact of these additional restrictions, which have continued throughout this period and are beyond those experienced in September 2020, is ongoing and still to be determined.

See how we use block caving to transport the ore body at Oyu Tolgoi

Growth

Global demand for copper is set to grow, driven by urbanisation, industrialisation and increasing requirements for renewable energy: copper plays a key role in electrification and power production. For example, a wind turbine capable of generating a megawatt of power – enough to supply several hundred homes – needs more than three tonnes of copper.

Given its significance to the global copper industry and the likely multi-generational nature of the business, Oyu Tolgoi is being developed with a distinctly long-term view. Guided by Oyu Tolgoi's vision, 'From natural wealth to enduring value, knowledge and skill', the partners and stakeholders involved in the project are focused on delivering a safe and globally competitive copper business that contributes to and facilitates the prosperity of Mongolia.

At peak production, Oyu Tolgoi is expected to produce 480,0002 tonnes of copper per year on average, from 2028 to 2036, from the open pit and underground. By 2030 it is expected to be the fourth largest copper mine in the world.

2 This production target (stated as recovered metal) for the Oyu Tolgoi underground and open pit mines was previously reported in a release to the market on 16 December 2020 (market release). All material assumptions underpinning the production target continue to apply and have not materially changed.

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Oyu Tolgoi Underground Project

Our world-class open pit mine and underground project using block-caving mining techniques to extract the ore and transport it to the surface.

Contact Oyu Tolgoi

Concentrator, Oyu Tolgoi, Mongolia

Oyu Tolgoi

Monnis Tower
Chinggis Avenue 15
Sukhbaatar District
Ulaanbaatar 14240
Mongolia

 

E: OT Enquiries
T: +976 11 331880