Name of the Project
Tavan Tolgoi power plant (TTPP) project.
Location
Mongolia.
Project Owner/s
Rio Tinto.
Project Description
Rio Tinto continues to progress options to secure domestically sourced power for the Oyu Tolgoi copper mine, in Mongolia, which it is obliged to do until June 30, 2023, under the 2009 investment agreement between Turquoise Hill, the government of Mongolia and Rio Tinto, and the subsequent Power Sector Framework Agreement, signed in 2018.
The TTPP project involves the construction of a 300 MW coal power plant.
Potential Job Creation
Not stated.
Capital Expenditure
The project is estimated at $924-million.
Planned Start/End Date
Construction of the coal-fired power plant is set to begin no later than July 2021, and commissioning within four years thereafter.
Latest Developments
Rio Tinto subsidiary Turquoise Hill and the government of Mongolia have reached an agreement on the preferred domestic power solution for the Oyu Tolgoi copper project, paving the way for the Mongolia government to fund and build a State-owned power plant at Tavan Tolgoi.
The agreement, which is a revision of the power source framework agreement (PSFA) signed in 2018, states that the parties will work towards finalising a power purchase agreement by the end of March 2021, Rio Tinto has said.
Oyu Tolgoi currently uses imported power, and government and Oyu Tolgoi have committed to extending the current arrangement to ensure that continued stable power is supplied to the mine and underground project until the State-owned power plant is commissioned and can supply stable, reliable and continuous power.
Turquoise Hill CEO Ulf Quellmann has said that the amendments to the PSFA provide Oyu Tolgoi and government with the additional framework and time required to solidify a power solution and finalise the commercial arrangements in the best interest of all stakeholders.
Key Contracts and Suppliers
None stated.
Contact Details for Project Information
Rio Tinto investor relations (Asia), email media.enquiries@riotinto.com.