Ulaanbaatar
Oyu Tolgoi announces Q4 2015 production update
Economy | MiningUlaanbaatar /MONTSAME/ The Oyu Tolgoi LLC Tuesday announced its production update for the fourth quarter of 2015.
President and Chief Executive Officer Andrew Woodley said, “I’m delighted to report a strong performance in 2015--the Oyu Tolgoi team surpassed targets on copper production. Safety remained our top focus and we maintained our position as a top safety performer across Rio Tinto Group.
“We have achieved a great deal in 2015, however, our external environment--and particularly commodity markets--remain challenging. This requires us to do more to achieve zero harm and increase productivity and reduce costs, even as we work towards starting underground development. "I am confident that the Oyu Tolgoi team will continue to set a new standard of excellence in 2016, and ensure our right to grow in a competitive business landscape.
"In Q4’15, throughput increased 8.5 percent over Q3’15 reaching an all-time high. Copper production for the quarter increased 2.3 percent over Q3’15 due to higher volumes. Gold production for Q4’15 increased 68.3 percent over Q3’15 due to higher grades from Phase 2 and higher volumes.
"Copper production for 2015 of 202,200 tons exceeded Turquoise Hill’s guidance of 175,000 to 195,000 tons and annual gold production of 653,000 ounces met 2015 guidance of 600,000 to 700,000 ounces. For 2015, Oyu Tolgoi’s second full year of production, the mine operated at record levels. Compared to 2014 results, 2015 mined production increased 19.3 percent, concentrator throughput increased 23.9 percent, concentrate production increased 39.9 percent, copper production went up 36.3 percent, and gold production--10.9 percent.
"Oyu Tolgoi is expected to produce 175,000 to 195,000 tons of copper and 210,000 to 260,000 ounces of gold in concentrates for 2016. The majority of 2016 gold production is expected in the first half of the year.
"In December of 2015, Oyu Tolgoi signed a $4.4 billion project finance facility, which was an unprecedented milestone for Turquoise Hill. Work continues toward completing the 2015 feasibility study, including the updated capital estimate and securing all necessary permits for the development of the underground mine. Once these steps have been completed, which is expected in Q1’16, the Company expects a formal ‘notice to proceed’ decision by the boards of Turquoise Hill, Rio Tinto and Oyu Tolgoi in early Q2’16."
