The Oyu Tolgoi Board of Directors has sanctioned an alternative development plan for the Oyu Tolgoi copper and gold mine, as discussions persist with Entrée Resources and the Mongolian Government regarding the transfer of licences for mining in the Entrée joint venture (JV) area.
This decision arrives amidst the steady progress of the mine, with production from Panel 0 and Panel 2 anticipated in 2025 and 2026, respectively, aligning with Rio Tinto’s 2025 copper output forecast of 780,000–850,000 tonnes (t).
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The mine’s exceptional ore body offers several potential development routes. Under the original plan, Panel 1, encompassing the Entrée JV area, was set to bolster production from 2027.
However, development efforts in this area are now on hold until the Mongolian Government processes the licence transfer from Entrée to Oyu Tolgoi.
Meanwhile, limited work will proceed in Panel 1 outside the JV zone, with resources being reallocated to advance development in Panel 2 South, which is not part of the JV.
Rio Tinto Copper chief executive Katie Jackson said: “Oyu Tolgoi continues to ramp-up as planned, with the cave performing above expectations. Our understanding of the ore body is growing as production and development progresses, further increasing our confidence and flexibility. With lateral development work only just beginning in Panel 1, this is the right time to pivot and bring forward development in Panel 2 South to maintain our options.
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By GlobalData“Transferring the licences for the Entrée joint venture area will maximise the value Oyu Tolgoi delivers for all parties, and we are continuing to work with the Government of Mongolia and Entrée Resources towards this outcome.”
The production ramp-up at Oyu Tolgoi is on course to yield an average of approximately 500,000 tonnes per annum (tpa) of copper from 2028 to 2036.
The plan allows for the commencement of mining operations in either Panel 1 or Panel 2 South, depending on the completion of the Entrée licence transfers.
Given that lateral development in Panel 1 has only recently started, it is an opportune moment to advance the development of Panel 2 South in order to preserve flexibility.
Oyu Tolgoi, the operator of the Oyu Tolgoi mine, is a JV between Rio Tinto, which holds a 66% stake, and the Mongolian Government, which owns the remaining 34%.
In addition, Rio Tinto announced in November of the previous year its partnership with China’s State Power Investment Corporation to test battery swap technology for electric haul trucks at the mine.
This two-year initiative will involve eight haul trucks with 91t payloads, 13 batteries boasting 800 kilowatt-hours of capacity, and a robotic battery swap and charging station.
The initial truck is set to arrive at Oyu Tolgoi this year, with the entire fleet and associated infrastructure set for commissioning by mid-2025.
