Oyu Tolgio Gold Tender

ScopeThe Oyu Tolgoi gold and copper project also known as Turquoise Hill is situated in the south Gobi region of Mongolia around 80km north of the Chinese-Mongolian border and 550km south of Ulaanbaatar. It is one of the biggest gold and copper mines in the world and has the potential to produce more than 500000 tonnes per annum tpa following improvements in 2027. The mine is jointly owned by multinational resources company Turquoise Hill Resources 66 previously Ivanhoe Mines and Erdenes OT owned by the Government of Mongolia 34. Rio Tinto which has a 51 stake in Turquoise Hill Resources has been operating and managing the development of the Oyo Tolgoi mine since 2010. An integrated development plan IDP suggests that the Oyu Tolgoi Mine will be capable of average annual production in excess of one billion pounds of copper and 330000oz of gold for at least 35 years. Peak annual production exceeding 1.2 billion pounds of copper and 650000oz of gold is projected for the first ten years. On 31 March 2010 Turquoise Hill Resources announced that the necessary conditions to develop and operate the mine were completed. The development phase of the project began following approval by the Mongolian Government in April 2010. Approximately 758m has been approved by a joint committee between Turquoise Hill Resources and Rio Tinto. In 2011 a new zone of shallow copper-gold-molybdenum mineralisation was discovered approximately 10km north of the Oyo Tolgoi property extending the deposits strike length beyond 23km.In 2009 an investment agreement between Turquoise Hill Resources Rio Tinto and the Mongolian Government was presented in parliament after getting approval from the Cabinet and the National Security Council. During the same period Turquoise Hill Resources entered an agreement with GoviEx Gold to introduce proprietary Zeus technology at Oyu Tolgoi in an expanded induced polarisation survey. The survey will test Oyu Tolgois copper and gold mineralised trend. Oyu Tolgoi owners signed a 4.4bn project finance agreement with global financial institutions and export credit agencies from the US Canada and Australia as well as 15 commercial banks in December 2015. The agreement includes an additional 1.6bn supplement debt to complete underground development. The South Gobi area lies near the boundary of the South Mongolian and the South Gobi tectonic units. Mainly Palaeozoic volcanic sedimentary and intrusive rocks and Mesozoic sedimentary cover underlie the region. The series of deposits discovered by Turquoise Hill Resources at Oyu Tolgoi and on the adjoining Shivee Tolgoi joint-venture property during the past six years stretch across 6.6km and have a total proven and probable reserves of 1.45 billion tonnes graded at 0.86 Cu 0.30gt Au and 1.97gt Ag as of December 2015.