TORONTO (miningweekly.com) – Rio Tinto Subsidiary Turquoise Hill Resources on Friday reported that despite a recent concentrator fire at the massive Oyu Tolgoi copper/gold mine, in Mongolia, the operation was on track to meet its expected full-year output.
Turquoise Hill in October reduced its 2014 forecasts for gold and copper output due to delays in advancing mine development in the third quarter.
The miner, which owned some 66% of Oyu Tolgoi, expected the mine to produce between 550 000 oz and 600 000 oz of gold in concentrates this year, down from the 600 000 oz to 700 000 oz it had forecast in August. It also reduced its expectation for copper concentrate output to between 135 000 t and 150 000 t this year, down from a range of 135 000 t to 160 000 t before.
Operations at the concentrator restarted after three days on December 6, with both semi-autogenous grinding mills and three of four ball mills now operating. Repairs to the concentrator's damaged cyclone pack were “progressing well” and were expected to be complete in three to four weeks, Turquoise Hill said.
Oyu Tolgoi output for 2015 was expected to be 600 000 oz to 700 000 oz of gold and 175 000 t to 195 000 t of copper in concentrates. The variance in volume, when compared with the 2014 Oyu Tolgoi Technical Report, was driven by minor differences in the mine schedule and design as a result of timing.
Operating cash costs were expected to be about $900-million and capital expenditures were expected to be $230-million, of which about $185-million related to sustaining capital. Turquoise Hill said that the operation was focused on operating efficiently, seeing it implement cost reduction and productivity initiatives designed to generate increased cash flow and improved financial performance.
Rio Tinto owns 50.8% of Vancouver-based Turquoise Hill.