A mining enterprise, Turquoise Hill Resources Ltd. involves in the mining of copper, gold, and silver. The Vancouver, B.C.-based Company does so together with its subsidiaries. Turquoise Hill remains centered on developing an efficient cost structure in the next years because gold rates are low.
Turquoise Hill’s main material mineral resource property is the Oyu Tolgoi mine positioned in southern Mongolia. Oyu Tolgoi is pure copper and gold exposure. Turquoise Hill Resources has a 66% interest in the Oyu Tolgoi copper-gold-silver mine. On May 5, 2016, Oyu Tolgoi received the formal notice to proceed for underground development by the Boards of Directors’ of Turquoise Hill Resources, Rio Tinto, and Oyu Tolgoi LLC.
Oyu Tolgoi is one of the globe’s largest new copper-gold mines. The Oyu Tolgoi mine is roughly 550 kilometers south of Ulaanbaatar, Mongolia’s capital city. Oyu Tolgoi is 80 kilometers north of the Mongolia-China border. Mineralization on the property comprises porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend). This Trend has a strike length extending more than 26 kilometers.
The Oyu Tolgoi property consists of a rectangular block 10 x 9 kilometers in area. In it, the exploration prospects are called South Oyu, Southwest Oyu, Central Oyu, and Hugo Dummett (North and South). The development of Hugo North is presently taking place.
The Oyu Tolgoi mine has firstly undergone development as an open-pit operation. A copper concentrator plant, with related facilities and essential infrastructure to support a nominal throughput of 100,000 tonnes of ore per day, has been built to process ore mined from the Southern Oyu open pit. Long-term development plans for the Oyu Tolgoi mine are founded on a 95,000-tonne-per-day underground block-cave mine. Oyu Tolgoi has been producing and exporting copper and gold concentrate since 2013.
Oyu Tolgoi is shipping concentrate to customers in the People’s Republic of China (PRC). China is now the largest buyer of gold. It continues to be the largest copper consumer.
Turquoise Hill Resources signed a $4.4 billion project finance facility in December 2015, one of the largest in the mining industry. This is for underground development at the Oyu Tolgoi mine. It signed a vital contract in June 2016 with Jacobs Engineering Group. This contract is to provide engineering, procurement and construction management (EPCM) services for underground development.
Underground activities continue to progress at Oyu Tolgoi. This past July, Turquoise Hill Resources appointed Thiess, Khishig Arvin contractors for the development of the decline at Oyu Tolgoi. Turquoise Hill is working on its new technical report for Oyu Tolgoi. Its expectation is to publish the new technical report later in 2016.
The first part of underground development at Oyu Tolgoi is Hugo North Lift 1. Moreover, the development pipeline includes Hugo North Lift 2, Hugo South, as well as Heruga. The expectation is that Oyu Tolgoi, when fully developed, will represent approximately 30% of Mongolia’s GDP (Gross Domestic Product). Mongolians occupy 93% of Oyu Tolgoi roles.
Mr. Jeff Tygesen, Turquoise Hill Resources Chief Executive Officer, said that, “80% of Oyu Tolgoi’s value resides in our underground reserves. And I stated recently, that throughout this year, in my opinion it’s the best copper opportunity for development today.”