Oyu Tolgoi announces performance results for third quarter 2020

On November 20, today, Oyu Tolgoi, Mongolia’s biggest copper and gold mining organization, delivered the most recent release of its exhibition scorecard, featuring key execution measurements for the second from last quarter of 2020, and gave a report on underground turn of events, and its proceeded with avoidance gauges on COVID-19.

Oyu Tolgoi was granted the Copper Mark, the copper business’ new mindful creation acknowledgment program. The Copper Mark requires the organization to show that it meets more than 30 models for capable ecological, social and administration working practices.

Oyu Tolgoi CEO, Armando Torres, stated, “We are satisfied to be among the first in the copper business to be granted the Copper Mark, exhibiting our duty to mindful mining and straightforwardness. We accomplished this along with every one of our partners and networks in Mongolia. We will keep maintaining the most elevated social and ecological principles and draw on the exhortation of natural specialists and the networks wherein we work.”

The organization is proceeding with its nearby checking of the COVID-19 circumstance with its Business Resilience Team and is taking preventive measures all through the tasks. The preventive conventions are in full consistence with the direction and declarations gave by the Government of Mongolia, State Emergency Committee, and the neighborhood experts in Umnugovi area and Khanbogd soum, reports Oyu Tolgoi.

Q3 2020 Operational Update

• Open pit activities proceeded with continuous.

• Achieved an All Injury Frequency Rate (AIFR) of 0.17 per 200,000 individuals/hours worked.

• Maintained greatness in water sparing, utilizing 0.35 cubic meters of crude water per ton of mineral handled contrasted with its objective of 0.55, and accomplishing a normal water-reusing pace of 87.5 percent, contrasted with its objective of 80%, toward the finish of the second from last quarter.

• Ninety-four percent of Oyu Tolgoi’s labor force were Mongolian residents.

• Paid US$201 million as expenses, charges and different installments to the Government of Mongolia as of the finish of the second from last quarter of 2020. Since 2010, Oyu Tolgoi has paid US$2.8 billion in assessments, expenses and different installments including VAT to Mongolian providers.

• Collaborated with 703 providers before the finish of the second from last quarter of 2020, of which 468 are public organizations, which represents 73 percent of the all out tasks acquirement spend.

Q3 2020 Production Update

• Mined copper creation from the open pit was 28 percent higher than a similar quarter of 2019 and consistent quarter-on-quarter intelligent of the transition to higher evaluation zones of the open pit in 2020, principally because of quickened mine turn of events and creation staging. Admittance to higher copper and gold evaluations is required to proceed for the rest of 2020, which was initially gotten ready for the main portion of 2021.

• Q3 2020 plant throughput was marginally higher than Q3 2019 because of somewhat higher plant accessibility and an expanded processing rate related with milder mineral.

• Copper and gold creation direction for 2020 remaining parts inside the scopes of 140,000 to 170,000 tons and 155,000 to 180,000 ounces individually, with gold creation moving towards the higher finish of the reach.

Underground Development Update

• Work on the venture has kept on advancing in spite of COVID-19 controls and progressing worldwide travel limitations gave by the Government of Mongolia.

• Care and support exercises proceed at Shafts 3 and 4; some dispatching exercises have progressed in anticipation of shaft sinking, including rope establishment on Shaft 4. Further advancement will require the remobilisation of global shaft sinking experts and planning is in progress to activate a portion of these contractual workers before the finish of 2020 (subject to change because of the current COVID-19 limitations in the nation).

• Overall, underground parallel advancement has now arrived at 45,858 comparable meters, or around 90% of the necessary improvement to help terminating of the first drawbell.

• All surface framework needed for economical creation is finished and the group is centered around advancing the basic underground Material Handling System 1 (MHS1) to the stage required in front of the first drawbell terminating. The equilibrium of undertaking framework to be conveyed post consummation of MHS1 isn’t required for maintainable creation, be that as it may, it is expected to help the creation increase profile.

• Preliminary signs from the authoritative gauge measure are that first manageable creation is moving towards the previous months of the October 2022 to June 2023 territory. The assessed improvement capital cost stays inside the scope of US$6.6 to US$7.1 billion. This appraisal has now been refreshed to incorporate known expense and timetable effects from COVID-19 and expects a facilitating of movement limitations and COVID-19 related controls from the hour of detailing. This remaining parts subject to continuous survey as a feature of settling the authoritative gauge of cost and timetable for Panel 0, expected in the final quarter of 2020.

• On 3 July, Oyu Tolgoi reported the fruition of a refreshed possibility study (OTFS20) arranged as per Mongolian guidelines and principles. Enrollment of the Updated Reserve and Resource Report (RR19) has been deferred past the 150-day time of audit since its accommodation in February 2020. Enrollment of RR19 is needed before formal thought and acknowledgment of the OTFS20. As per the 2009 Investment Agreement and Mongolian guideline, the Government of Mongolia is needed to think about every one of the RR19 and OTFS20 inside 150 days from accommodation. The OTFS20 likewise frames the reason for the inspire in the general underground venture cost that is needed to be affirmed preceding the under-cut (choice to start collapsing) 2021.

Different Updates

• Oyu Tolgoi has been attempting to advance force exchanges with the Government of Mongolia as needed under the details of the Power Source Framework Agreement Amendment endorsed in June 2020:

• An augmentation of intensity import plans with China’s Inner Mongolian Power Company is needed by 1 March 2021 to guarantee adequate conviction on future gracefully of intensity before the under-cut choice is taken.

• A Power Purchase Agreement (PPA) for power gracefully to Oyu Tolgoi from a State Owned Power Plant at Tavan Tolgoi that will be supported by the Government of Mongolia is needed to be executed by 31 March 2021.

• Following the consent to buy some power from the Mongolian public framework, on 3 September 2020, Oyu Tolgoi LLC and the Southern Region Electricity Distribution Network executed a PPA to gracefully capacity to the Oyu Tolgoi camps.

Foundation

Oyu Tolgoi LLC is a vital organization between the Government of Mongolia, Turquoise Hill Resources and Rio Tinto. Situated in the South Gobi, Oyu Tolgoi initiated shipment of item to clients in July 2013. Oyu Tolgoi is overseen by Rio Tinto, which is contributing worldwide aptitude and bleeding edge innovation to help build up Mongolia’s mining industry and guarantee Oyu Tolgoi is one of the world’s most developed mines.

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