Oyuu Tolgoi
Encyclopedia
The Oyu Tolgoi mine is a combined open pit
and underground mining project in Khanbogd
sum within the south Gobi Desert
, approximately 235 kilometres (146 mi) east of the Ömnögovi Province
capital Dalanzadgad
. The site was discovered in 2001 and is being developed as a joint venture
between Ivanhoe Mines
, Rio Tinto
and the Government of Mongolia. The mine is under construction as of 2010 and scheduled to begin production in 2013.
The Oyu Tolgoi mining project is the largest financial undertaking in Mongolia's history and is expected upon completion to account for more than 30% of the country's gross domestic product
. Copper production is expected to reach 450000 tonnes (496,040.1 ST) annually. Financing for the project has come in part from the Rio Tinto Group
and an investment agreement between Ivanhoe Mines and the government of Mongolia.
-copper
ore
deposit in 2001 in the Gobi Desert
of Mongolia. It is in an area known as Oyu Tolgoi (Mongolian for Turquoise Hill), where in the time of Genghis Khan
outcropping rocks were smelted for copper. By 2003 there were 18 exploration
drill rig
s on the property employing approximately 200 people, and Oyu Tolgoi was the "biggest mining exploration project in the world."
, where the mined copper is expected to be shipped. The Oyu Tolgoi deposits contain (as of 2010) 79 billion pounds (35,833,000 tonnes) of copper, and 45 million ounces (1,275,000,000 grams) of gold.| Production is scheduled to begin in 2013 and to reach full capacity in 2018. Over the anticipated life of mine (45 years), Oyu Tolgoi is scheduled to produce 450000 tonnes (496,040.1 ST) of copper per year, an amount equal to 3% of global production. Oyu Tolgoi is also expected to produce 330,000 ounces of gold annually.
mining techniques. Initially the mine will produce 70,000 tonnes per day, ramping up to 85,000 tonnes per day with ore from both the open pit and the underground mine (underground mining is to be done by block caving). The yield from the first phase of mining will be ground through one semi-autogenous grinding mill (SAG mill). Expansion to new underground areas will result in an additional ramp up to 140,000 tonnes per day, with possible expansion to 170,000 tonnes per day.
. In early 2010 global mining company Rio Tinto
owned 22.4% of Oyu Tolgoi owner Ivanhoe Mines, and gave both technical assistance and financial support to the project. At the time Rio Tinto had the option of increasing their stake to 46.6%. On 31 March 2010 the Government of Mongolia approved an investment agreement where they would purchase 34% of the project. In October 2010, Ivanhoe announced a new US$1 billion share offering in order to raise funds to develop this mine. Rio Tinto increased its ownership of Ivanhoe in December 2010, also assuming direct management of the design and construction of the project, however without fulfilling another aim, to achieve direct ownership of the mine.
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
and underground mining project in Khanbogd
Khanbogd, Ömnögovi
Khanbogd is a sum of Ömnögovi Province in southern Mongolia. Khanbogd is the site of the Oyu Tolgoi mine, which is from the sum centre....
sum within the south Gobi Desert
Gobi Desert
The Gobi is a large desert region in Asia. It covers parts of northern and northwestern China, and of southern Mongolia. The desert basins of the Gobi are bounded by the Altai Mountains and the grasslands and steppes of Mongolia on the north, by the Hexi Corridor and Tibetan Plateau to the...
, approximately 235 kilometres (146 mi) east of the Ömnögovi Province
Ömnögovi Province
Ömnögovi is an aimag of Mongolia, located in the south of the country, in the Gobi Desert. Ömnögovi is Mongolia's largest aimag. The capital is Dalanzadgad....
capital Dalanzadgad
Dalanzadgad
Dalanzadgad is the capital of Ömnögovi Aimag in Mongolia. It is located south of the national capital Ulaanbaatar. The altitude of the city center is 1,470 meters .As of 2006, its population is 14,000.-Transportation:...
. The site was discovered in 2001 and is being developed as a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
between Ivanhoe Mines
Ivanhoe Mines
Ivanhoe Mines Ltd. is a Canadian mineral exploration and development company headquartered in Vancouver, British Columbia. Its focus is on the pacific rim where it is in the process of developing several large mines, the principal one being the Oyu Tolgoi Project in Southern Mongolia 200 km...
, Rio Tinto
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
and the Government of Mongolia. The mine is under construction as of 2010 and scheduled to begin production in 2013.
The Oyu Tolgoi mining project is the largest financial undertaking in Mongolia's history and is expected upon completion to account for more than 30% of the country's gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
. Copper production is expected to reach 450000 tonnes (496,040.1 ST) annually. Financing for the project has come in part from the Rio Tinto Group
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
and an investment agreement between Ivanhoe Mines and the government of Mongolia.
History
Canadian-based Ivanhoe Mines discovered the goldGold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
-copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
ore
Ore
An ore is a type of rock that contains minerals with important elements including metals. The ores are extracted through mining; these are then refined to extract the valuable element....
deposit in 2001 in the Gobi Desert
Gobi Desert
The Gobi is a large desert region in Asia. It covers parts of northern and northwestern China, and of southern Mongolia. The desert basins of the Gobi are bounded by the Altai Mountains and the grasslands and steppes of Mongolia on the north, by the Hexi Corridor and Tibetan Plateau to the...
of Mongolia. It is in an area known as Oyu Tolgoi (Mongolian for Turquoise Hill), where in the time of Genghis Khan
Genghis Khan
Genghis Khan , born Temujin and occasionally known by his temple name Taizu , was the founder and Great Khan of the Mongol Empire, which became the largest contiguous empire in history after his death....
outcropping rocks were smelted for copper. By 2003 there were 18 exploration
Exploration diamond drilling
Exploration diamond drilling is used in the mining industry to probe the contents of known ore deposits and potential sites. By withdrawing a small diameter core of rock from the orebody, geologists can analyze the core by chemical assay and conduct petrologic, structural and mineralogic studies...
drill rig
Drilling rig
A drilling rig is a machine which creates holes or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person...
s on the property employing approximately 200 people, and Oyu Tolgoi was the "biggest mining exploration project in the world."
Description
The Oyu Tolgoi mine is in the South Gobi Desert of Mongolia, 80 kilometres (49.7 mi) north of Mongolia's border with the People's Republic of ChinaPeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, where the mined copper is expected to be shipped. The Oyu Tolgoi deposits contain (as of 2010) 79 billion pounds (35,833,000 tonnes) of copper, and 45 million ounces (1,275,000,000 grams) of gold.| Production is scheduled to begin in 2013 and to reach full capacity in 2018. Over the anticipated life of mine (45 years), Oyu Tolgoi is scheduled to produce 450000 tonnes (496,040.1 ST) of copper per year, an amount equal to 3% of global production. Oyu Tolgoi is also expected to produce 330,000 ounces of gold annually.
Mining and milling
Oyu Tolgoi will use both underground and open pitOpen-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
mining techniques. Initially the mine will produce 70,000 tonnes per day, ramping up to 85,000 tonnes per day with ore from both the open pit and the underground mine (underground mining is to be done by block caving). The yield from the first phase of mining will be ground through one semi-autogenous grinding mill (SAG mill). Expansion to new underground areas will result in an additional ramp up to 140,000 tonnes per day, with possible expansion to 170,000 tonnes per day.
Financing
As of 2010, the estimated costs for bringing the Oyu Tolgoi mine into production was US$4.6 billion, making it (financially) the largest project in Mongolian history. The mine will account for more than 30% of the Mongolian GDPGross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
. In early 2010 global mining company Rio Tinto
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
owned 22.4% of Oyu Tolgoi owner Ivanhoe Mines, and gave both technical assistance and financial support to the project. At the time Rio Tinto had the option of increasing their stake to 46.6%. On 31 March 2010 the Government of Mongolia approved an investment agreement where they would purchase 34% of the project. In October 2010, Ivanhoe announced a new US$1 billion share offering in order to raise funds to develop this mine. Rio Tinto increased its ownership of Ivanhoe in December 2010, also assuming direct management of the design and construction of the project, however without fulfilling another aim, to achieve direct ownership of the mine.