16th Mar 2020 09:09
(Alliance News) - Miner Rio Tinto PLC on Monday said it is working with the government of Mongolia to ensure Oyu Tolgoi is operating in accordance with the restrictions put in place to contain the spread of Covid-19.
Oyu Tolgoi, located in the South Gobi region of Mongolia, is copper and gold deposit.
Since January, the movement of goods and people within Mongolia have been restricted within and across its border, and this has further escalated recently as the first case of Covid-19 has occurred in the country, Rio Tinto explained.
The FTSE 100-listed company said work on the underground project continues, but progress is being slowed amid restricted access for teams from Rio Tinto, Oyu Tolgoi and its construction partners to oversee development and provide specialist technical services.
Looking ahead, Rio Tinto said the mine design for the underground project currently remains on track to be completed in the first half of 2020, with a definitive estimate to be provided for the development of this orebody in the second half.
"Our focus is on ensuring the safety and health of all of our people at Oyu Tolgoi and we support the decisive action taken by the government to limit the spread of Covid-19. It has inevitably resulted in a restriction on the movement of goods and people in the country and this is slowing down construction activity at the underground project," said Chief Executive Arnaud Soirat.
He added: "It is too early to determine the impact of this and the team is doing all they can to minimise the disruption in a challenging environment."
Rio Tinto shares were trading 4.6% lower in London on Monday morning at 3,123.00 pence each.
By Evelina Grecenko; [email protected]
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