Robert Friedland, Executive Chairman of Ivanhoe Mines Ltd. (TSX:
IVN)(NYSE: IVN)(NASDAQ: IVN), and John Macken, President and Chief
Executive Officer, said today that full-scale construction of the
company's Oyu Tolgoi copper-gold complex is proceeding on schedule
and the first ore now is expected to be processed during the fourth
quarter of 2012.
"The successful ramp-up to full-scale construction this year is
a remarkable achievement by the project's workforce and
contractors," Mr. Macken said. "The steady progress being logged
across the Oyu Tolgoi site every week means we are on track to be
ahead of our construction schedule by the end of this year.
"Maintaining this pace will ensure that we will be commissioning
major production systems within approximately two years, when
initial ore from the new open pit is expected to be running through
the primary crusher and into storage, and when at least one of the
concentrator's two ore-grinding circuits will be in the
commissioning stage. We expect to meet our declared goal of
beginning full commercial production at Oyu Tolgoi in 2013," Mr.
Macken added.
An independently prepared Integrated Development Plan for Oyu
Tolgoi released by Ivanhoe Mines in May 2010 projected that the Oyu
Tolgoi concentrator initially would process 100,000 tonnes of ore
per day (36.5 million tonnes per year). It also estimated that the
average annual production at Oyu Tolgoi during the first 10 years
of operation would exceed 1.2 billion pounds (544,000 tonnes) of
copper and 650,000 ounces of gold.
Under the start-up plan outlined in the Integrated Development
Plan, ore initially would be sourced from the open-pit mine that is
to be built on the Southern Oyu deposits. At the same time, the
adjacent, higher-grade underground mine on the Hugo Dummett Deposit
is scheduled to be developed toward full production of 85,000
tonnes per day. The expansion would be timed to provide for the
processing of ore to be mined from underground, as well as the open
pit, when operations reach full capacity.
Mr. Macken said two of the most striking indications of the rate
of construction progress being achieved are the extensive
foundations for the large, state-of-the-art concentrator plant and
for the 31-storey-high, reinforced concrete headframe for the
10-metre-diameter main production shaft for the underground
block-cave mine at the Hugo Dummett Deposit. (See the latest images
in the Oyu Tolgoi photo gallery at www.ivanhoemines.com.)
"One nearer-term goal is to complete the foundations and allow
the erection of the exterior steel to enclose the concentrator
building before the onset of winter next year so that work can
continue indoors until the start of the 2012 outdoor construction
season. A newly assembled ready-mix concrete plant, the largest in
Mongolia, can produce enough concrete every day to fill two
Olympic-sized swimming pools."
The Oyu Tolgoi workforce has been steadily increasing in recent
months and currently totals approximately 4,400. The budget for
construction in 2010 has been set at US$754 million, with an
additional US$195 million earmarked for operations.
Oyu Tolgoi skills-training initiatives to help 3,000 more
Mongolians qualify for jobs with development projects
Mongolian Prime Minister Sukhbaatariin Batbold recently led a
first-hand inspection of the Oyu Tolgoi construction progress by
members of the Government's Cabinet and members of Parliament.
Prime Minister Batbold said he was pleased with the progress and
noted that Oyu Tolgoi would be three times larger than the Erdenet
Copper Mine, in north-central Mongolia, which accounts for 40% of
the value of Mongolia's exports and generates more than 30% of the
country's gross domestic product.
The Prime Minister said the government must work to ensure that
Oyu Tolgoi begins production on schedule and contributes to
Mongolia's economic growth. "Overall, the work is progressing
smoothly and the mine will be in operation in two years," he said
during a news conference at Oyu Tolgoi.
Minister of Education, Culture and Science Yo. Otgonbayar
confirmed that the government had signed a memorandum of
understanding with Oyu Tolgoi for a US$58 million program that will
provide technical and vocational training to equip up to 3,300
trainees to be eligible for jobs at Oyu Tolgoi. Training programs
will begin at 12 vocational institutes in early October and extend
to another 24 institutions next year. Two new vocational training
centres will be built and five selected educational institutions
will be upgraded. The program also will provide scholarships each
year to 200 students studying at Mongolian and international
universities.
Following the Oyu Tolgoi visit, Cabinet members attended a
ceremony to mark the laying of foundations for a vocational
training centre in the South Gobi regional capital of Dalanzadgad.
"We are pleased with this work; we are offering people from all
over the country an opportunity to lend their hands in the Oyu
Tolgoi Project, as well as other large developments," Prime
Minister Batbold said. "The development of Oyu Tolgoi also will
substantially help our problems with unemployment."
Several Cabinet ministers were lowered 1,300 metres down Shaft
#1 at Oyu Tolgoi and travelled through the growing network of
tunnels providing mine development and exploration access to the
copper-rich Hugo Dummett Deposit.
The Oyu Tolgoi Project is committed to ensuring that Mongolians
hold at least 60% of the available jobs during construction and 90%
of the jobs during production. During the period from January 1 to
August 15 this year, the Oyu Tolgoi Project signed 98 contracts
with Mongolian companies, with a total value of US$206 million.
Mongolian companies also filled 849 purchase orders totalling
US$50.2 million during the same period, accounting for 86% of all
purchase orders for the project.
About Ivanhoe Mines (www.ivanhoemines.com)
Ivanhoe Mines (NYSE: IVN)(NASDAQ: IVN)(TSX: IVN) is an
international mining company with operations focused in the Asia
Pacific region. Assets include the company's 66% interest in the
world-scale, Oyu Tolgoi copper-gold mine development project in
southern Mongolia; its 57% interest in Mongolian coal miner
SouthGobi Resources (TSX: SGQ)(SEHK: 1878); a 63% interest in
Ivanhoe Australia (ASX: IVA), a
copper-gold-uranium-molybdenum-rhenium exploration and development
company; and a 50% interest in Altynalmas Gold Ltd., a private
company developing the Kyzyl Gold Project in Kazakhstan.
Forward-looking statements
Certain statements made herein, including statements relating to
matters that are not historical facts and statements of our
beliefs, intentions and expectations about developments, results
and events that will or may occur in the future, constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995.
Forward-looking information and statements typically are identified
by words such as "anticipate," "could," "should," "expect," "seek,"
"may," "intend," "likely," "plan," "estimate," "will," "believe"
and similar expressions suggesting future outcomes or statements
regarding an outlook. These include, but are not limited to, the
objective of attaining commercial production at Oyu Tolgoi in 2013;
the target of the fourth quarter of 2012 for the processing of the
first ore; and other statements that are not historical facts.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanhoe Mines' management
in light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking information or statements. Important factors
that could cause actual results to differ from these
forward-looking statements include those described under the
heading "Risks and Uncertainties" elsewhere in the Company's
MD&A filed on Sedar. The reader is cautioned not to place undue
reliance on forward-looking information or statements.
Contacts: Ivanhoe Mines Ltd. Bill Trenaman Investors
+1.604.688.5755 Ivanhoe Mines Ltd. Bob Williamson Media
+1.604.331.9830 www.ivanhoemines.com
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