OT Underground Mine Development funding to be settled next month

2015-10-28 18:20:46

The CEO of Erdenes Mongol LLC B.Byambasaikhan has announced the first installment – USD 4.2-4.6 billion – of the funding for Oyu Tolgoi Project (Phase II) Underground Mine Development will be taken out as loans from 19 international banks.

The first estimation of required investment for underground development is likely to increase from 5.7 billion to 7-8 billion US dollars, said a senior economist at Erdenes Mongol Ch.Otgochuluu.

OT Phase II financing will be settled within this year and the project implementation will commence within the second quarter of 2016, according to Turquoise Hill Resources.

The company has employed more than 100 people, so far, for preparatory works, and expects to hire total of 3,000 new workers for the actual implementation.

Initial works include placing of orders, selecting contractors, calculations’ verification and detailed engineering calculations.

According to Mr Otgochuluu, Turquoise Hill has issued a financial guarantee worth one billion US dollars for the construction of Tavantolgoi Power Plant. The Government has given directions to associated officials to launch development of the plant from spring of 2016, he said.