15th Dec 2015 06:49
LONDON (Alliance News) - Rio Tinto PLC on Tuesday said it has secured a USD4.40 billion project financing agreement to back the Oyu Tolgoi underground copper mine in Mongolia.
Funding for the project has been provided by a number of international financial institutions and by export credit agencies representing the US, Canada and Australia, along with fifteen commercial banks.
Rio Tinto and the other shareholders in the mine will now continue working towards updating the feasibility study for the mine and securing all necessary permits to start work. The mine, located in the South Gobi region of the country, is one of the largest undeveloped high-grade copper deposits in the world.
"This kind of mining development partnership model sets the industry benchmark for future schemes and underscores Rio Tinto?s commitment to responsible and prudent growth. Long-term copper fundamentals remain strong and Oyu Tolgoi as a tier one asset will be a globally important source of supply as the market moves back into structural deficit over the next few years," said Jean-Sebastian Jacques, the chief executive of Rio Tinto's copper and coal operations.
By Sam Unsted; [email protected]; @SamUAtAlliance
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