CORRECT: Ivanhoe CEO: Construction At Oyu Tolgoi Ahead Of Schedule
June 07 2011 - 3:56PM
Dow Jones News
Construction of the Oyu Tolgoi copper mine in Mongolia is well
ahead of schedule and revenue from byproducts will substantially
offset the cost of production, Ivanhoe Mines Ltd. (IVN, IVN.T)
Chief Executive Officer Robert Friedland said Tuesday.
Ivanhoe is building the Oyu Tolgoi copper mine in Mongolia in
partnership with Rio Tinto PLC (RIO.LN, RIO) and the Mongolian
government. The underground copper mine will have two primary mine
shafts, a vast copper concentrator complex and an airport, and
production is "ahead of schedule," Friedland told attendees of the
Metal Bulletin Global Copper Markets Forum in New York.
Oyu Tolgoi is forecast to have 59 years of mine life with about
81 billion pounds of copper reserves, with analysts projecting the
reserves figure will likely increase as the project develops.
In addition to copper, Oyu Tolgoi will also produce about three
million ounces of silver each year and substantial amounts
molybdenum.
"There is no shortage of ore at Oyu Tolgoi," Friedland said. "By
year seven we will produce 1.1 million ounces of gold, and the
silver and molybdenum alone will more than cover the cost of
production," he said.
The project will have a cash cost of about $35 a metric ton, one
of the lowest in the world for greenfield production, he said. The
mine is expected to process 100,000 tons of ore a day.
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