The Board of Directors of Oyu Tolgoi LLC has approved the commencement of development work under an alternative mine plan while discussions continue with Entrée Resources and the Government of Mongolia regarding the transfer of licenses to allow mining in the Entrée joint venture area.
Oyu Tolgoi continues to ramp up production from Panel 0 and Panel 2 in 2025 and 2026 as planned, with Rio Tinto's copper forecast $RIO (-0,1%)
$RIO (-0,43%) for 2025 of 780 to 850kt1 remains unchanged.
The world-class orebody offers options with multiple development pathways. Panel 1, which includes the Entrée joint venture area, was targeted for production from 2027 under the existing mine plan. Development work in the Entrée Joint Venture area is now on hold until the Government of Mongolia has processed the required transfer of licenses from Entrée to Oyu Tolgoi LLC. Limited development work will continue in Field 1 outside of the Entrée Joint Venture area, with resources being redeployed to advance development work in Field 2 South, which is outside of the Entrée Joint Venture area.
Oyu Tolgoi's production ramp-up remains on track to deliver an average of 500 ktpa of copper from 2028 to 2036, with the option to bring Panel 1 or Panel 2 South into production first, depending on the timing of the Entrée license transfer.
Rio Tinto Copper Chief Executive Katie Jackson said: "Oyu Tolgoi continues to ramp up as planned, with the cave performing ahead of expectations. Our understanding of the orebody is growing as production and development progresses, further increasing our confidence and flexibility. As lateral development work has just commenced in Field 1, this is the right time to bring forward development in Field 2 South to preserve our options.
"The transfer of Entrée's joint venture area licenses will maximize the value of Oyu Tolgoi for all parties and we continue to work with the Government of Mongolia and Entrée Resources towards this outcome."
Oyu Tolgoi LLC is the owner and operator of the Oyu Tolgoi mine and is jointly owned by Rio Tinto (66%) and the Government of Mongolia (34%).
