Rio Tinto goes ahead with $5.3 billion expansion of Oyu Tolgoi

In a fresh sign that the downturn in the resources industry may be finally over, mining giant Rio Tinto (LON:RIO) and its Canadian affiliate Turquoise Hill (TSE:TRQ) have signed off on a $5.3 billion expansion of their massive Oyu Tolgoi gold and copper mine in Mongolia.

The decision ends a three-year stalemate and political tension over revenue sharing and the foreign role in Mongolia’s mining sector.

Oyu Tolgoi’s development, set to cost about $400 million more than previously thought, will begin within months, the companies said. First production from the underground expansion is expected by 2020, when a shortage of copper is tipped to emerge.

Turquoise Hill chief executive Jeff Tygesen said the decision to go ahead with long-awaited plan to develop a huge underground mine at the site was a “historic milestone.”

More to come …

The post Rio Tinto goes ahead with $5.3 billion expansion of Oyu Tolgoi appeared first on MINING.com.

from MINING.com http://ift.tt/1O2CWgg