FACTBOX-Timeline of Mongolia's Oyu Tolgoi copper mine


Reuters | Ulaanbaatar | Updated: 19-07-2019 15:43 IST | Created: 19-07-2019 15:40 IST
FACTBOX-Timeline of Mongolia's Oyu Tolgoi copper mine
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The Oyu Tolgoi copper-gold mine in the Gobi Desert is the biggest foreign investment project in Mongolia's history. The project is jointly owned by the government of Mongolia (34%) and the Canada-based miner Turquoise Hill Resources (66%).

Since 2010, Rio Tinto, which has a 51% controlling stake in Turquoise Hill, has been the operator of the Oyu Tolgoi project. The following is a timeline of the main developments at the mine.

-- May 8, 2000: Canada's Ivanhoe Mines, founded by U.S.-Canadian financier Robert Friedland, signs an earn-in agreement with Australian miner BHP for the Oyu Tolgoi copper-gold property, which covers more than 1,000 square km (368 square miles) of Mongolia's South Gobi region. -- April 22, 2002: Mongolian government formally announces the transfer of Oyu Tolgoi licenses from BHP Billiton to Ivanhoe Mines, giving Ivanhoe a 100% stake in the project.

-- July 21, 2003: Total inferred resources at Oyu Tolgoi increased to 32.4 billion pounds of copper, and 11.2 million ounces of gold, up 45% and 24% respectively since the previous estimate. -- Dec. 19, 2003: Ivanhoe raises $115 million in financing for Oyu Tolgoi.

-- Sept. 6, 2006: Mongolian government sets up a working group to create a formal Oyu Tolgoi investment agreement. -- Oct. 18, 2006: Rio Tinto forms a strategic partnership with Ivanhoe and buys a 9.95% stake in the company for $303 million.

-- Oct. 6, 2009: The government of Mongolia, Ivanhoe Mines, and Rio Tinto sign Oyu Tolgoi investment agreement at a state ceremony. The Mongolian government is given a 34% stake. -- Dec. 23, 2010: Ivanhoe approves $2.3 billion budget for further construction at the Oyu Tolgoi project, with 13% of the project already completed.

-- Oct. 6, 2011: Ivanhoe, Rio Tinto, and the Mongolian government issue statement reaffirming their commitment to investment agreement as construction passes the 50% stage. -- Jan. 25, 2012: After gradually raising its stake, Rio Tinto finally secures majority ownership of Ivanhoe.

-- Apr. 18, 2012: Rio Tinto and Ivanhoe issue "memorandum of agreement" on a financing deal for Oyu Tolgoi. Ivanhoe founder Friedland steps down as part of the agreement. -- Aug. 8, 2012: Ivanhoe officially changes its name to Turquoise Hill Resources, reflecting the English translation of "Oyu Tolgoi".

-- Oct. 15, 2012: Turquoise Hill and Rio Tinto reject formal government request to renegotiate the 2009 investment agreement. -- July 8, 2013: Rio Tinto announces Oyu Tolgoi has begun shipping copper concentrate to customers. Shipments had been repeatedly delayed because of arguments between Rio and the government on how the profits would be shared.

-- July 28, 2013: Work and funding are suspended on Oyu Tolgoi's underground expansion phase amid disputes with the Mongolian government on project financing and tax payments. -- June 23, 2014: The dispute over the project intensifies when authorities file an audit claiming unpaid taxes, penalties and disallowed entitlements at Oyu Tolgoi. The claim is rejected by Turquoise Hill.

-- May 18, 2015: Oyu Tolgoi's shareholders – Rio Tinto, Turquoise Hill and the government of Mongolia – sign agreement to settle their disputes and progress to the next stage of underground development. -- Dec. 14, 2015: A $4.4 billion financing plan was agreed with 20 international banks and financial institutions.

-- May 5, 2016: Oyu Tolgoi is given formal notice to restart the second phase underground construction. -- April 1, 2018: Mongolia arrests former finance minister Bayartsogt Sangajav as part of an ongoing investigation into corruption surrounding the signing of the 2009 investment agreement. Two prime ministers are later arrested in the probe.

-- May 2019: A parliamentary working group circulates recommendations to amend the Oyu Tolgoi agreement to lawmakers and the National Security Council. -- July 15, 2019: Rio Tinto announces that Oyu Tolgoi underground extension could be delayed by between 16-30 months and capital costs rise by nearly $2 billion. Shares in Turquoise Hill plunge as parliament prepares to vote on the new draft recommendations.

 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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