Fri, Nov. 27, 10:58 AM
- Rio Tinto (RIO -2.2%) says it is lining up project financing for a $4B expansion of its long-delayed Oyu Tolgoi copper mine in Mongolia and will make a final investment decision early next year.
- "What we need is consistency and stability and we believe we have the right environment today," Rio copper and coal chief executive Jean-Sebastien Jacques says. according to Reuters.
- Rio's Turquoise Hill Resources (TRQ +0.4%) subsidiary owns 66% of Oyu Tolgoi, with Mongolia's government owning the remainder of the project, located in the Gobi desert near Mongolia's border with China.
Thu, Nov. 5, 5:13 PM
Wed, Nov. 4, 5:35 PM
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Wed, Sep. 2, 11:29 AM
- Rio Tinto (RIO +1.3%) owns more than half of the shares of Turquoise Hill Resources (TRQ -1.7%), and likely will buy out the shares it does not already own in the next 12-18 months, CIBC analyst Tom Meyer predicts.
- Rio will make its move once key risks from the Oyu Tolgoi copper-gold project in Mongolia are removed, the analyst says, such as financing, a cost update on Oyu Tolgoi’s underground development, and next year’s Mongolian election.
- But Meyer maintains an Underperform rating and $4 price target on TRQ in a relative valuation call, saying higher-cost, higher-leveraged copper plays such as First Quantum Minerals (OTCPK:FQVLF) and HudBay Minerals (NYSE:HBM) offer more upside if commodity prices go up in the short term.
Wed, Aug. 5, 5:17 PM
Thu, Jul. 16, 12:13 PM
- Turquoise Hill Resources (TRQ -0.2%) says it recorded the highest concentrate output at its Oyu Tolgoi mine in Mongolia since operations began in 2013.
- TRQ says Q2 concentrate output rose ~65% Q/Q to 215M metric tons, boosted by a 20% surge in throughput and higher head grades, while copper and gold in concentrates increased a respective 64.5% and 178% Q/Q.
- TRQ says it expects to continue mining higher-grade ore during H2, foreseeing production of 175K-195K metric tons of copper and 600K-700K oz. of gold in concentrate this year.
- TRQ also says it is confident of striking a financial deal for Oyu Tolgoi's underground expansion by year's end.
Fri, May 29, 8:29 AM
- Mongolia's government says it plans to issue a $1B debt offering to put its fiscal affairs back in order, as it tries to ride a wave of goodwill that arose from the recent deal with Rio Tinto (NYSE:RIO) and Turquoise Hill Resources (NYSE:TRQ) to launch the crucial expansion project at the giant Oyu Tolgoi copper mine.
- According to a statement from the latest Cabinet meeting, the Oyu Tolgoi deal has given investors reason to reassess risk in the country.
- Mongolia is hungry for cash injections after an 84% decline in foreign investment last year, caused by a weaker commodities market and slowing growth in China.
Tue, May 26, 9:57 AM
- Rio Tinto (RIO -0.9%) will seek to raise as much as $6B of external funding to develop the Oyu Tolgoi underground mine in Mongolia, to be raised through third-party project financing, product off-take arrangements and other forms of funds, according to a development plan published by Turquoise Hill Resources (TRQ -0.2%), which owns 66% of the mine.
- Rio's goal is to raise more than $4B in third-party project financing and will target 15-20 banks, copper business head Jean-Sebastien Jacques has said.
- Rio and the Mongolian government last week ended a two-year dispute that stalled construction of the underground mine; estimated underground development capital is $4.7B, sustaining capital is $1.5B and the value-added tax and duties on capital is $600M, the agreement shows.
Tue, May 19, 3:31 PM
- Turquoise Hill (TRQ +3.2%) is higher but 51% TRQ owner Rio Tinto (RIO -3.3%) is lower following yesterday's deal with Mongolia opening the way for development of a long-delayed $5B development at Oyu Tolgoi, one of the world’s largest copper deposits.
- Oyu Tolgoi is "by far the best undeveloped growth project that any of the majors has, and it’s in the best commodity - copper,” said Deutsche Bank analyst Paul Young.
- Expanding Oyu Tolgoi will significantly increase Rio’s exposure to copper, a metal that many analysts say is heading for supply constraints that should support the price, and reduce its reliance on iron ore, where growth in supply and weak demand has sent prices plummeting.
- However, Rio says production from the expansion is unlikely before 2020, and Nomura's Patrick Jones believes Rio wants to minimize its capital spending during the mining downturn and expects to see a go-slow strategy for starting capex spending for the expansion.
- Under the agreement, TRQ gives up a 2% royalty fee, accepts a change in how royalties to the state are calculated, and will pay a $30M Mongolian tax bill instead of $127M that was initially calculated; TRQ says the changes affected less than 2% of the $7.4B net present value attributed to the expansion project in a study last year.
Tue, May 19, 9:15 AM
Mon, May 18, 7:08 PM
- Turquoise Hill Resources (NYSE:TRQ) +3.9% AH after announcing a settlement with Mongolia's government (I, II) in the two-year dispute over the expansion of the Oyu Tolgoi copper and gold mine, opening the door to ~$4B in new investment.
- The focus now is expected to shift to finalizing financing for the project, as well as a feasibility study and the securing of all necessary permits for development of the underground to begin.
- TRQ owns 66% of Oyu Tolgoi, and Rio Tinto (NYSE:RIO) controls the project through its 51% stake in TRQ; the Mongolian government owns the remaining 34%.
Mon, May 11, 5:15 PM
Sun, May 10, 5:35 PM
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Fri, May 1, 12:26 PM
- Turquoise Hill Resources (TRQ +0.6%) says a deal that would have allowed it to unload its remaining stake in Mongolian coal miner SouthGobi Resources has fallen through.
- TRQ, a unit of Rio Tinto (NYSE:RIO), says it cannot complete the transaction with Hong Kong-listed National United Resources for 56M SouthGobi shares under the terms of the agreement.
- The deal's failure marks another setback in TRQ's effort to sever ties with SouthGobi, a company that has been hurt by a slowing Chinese economy, weaker coal prices, accounting problems and funding woes.
Tue, Apr. 21, 2:42 PM
- Mongolia has extended its cooperation with a World Bank insurer, overcoming a major obstacle ahead of a $5.4B expansion project to the Oyu Tolgoi copper deposit.
- Disputes between the government and Oyu Tolgoi lead developer Rio Tinto (RIO -2.5%) have prevented the construction of an underground mine Rio says will unlock 80% of the copper wealth; Rio owns 66% of the mine indirectly through its Turquoise Hill Resources (TRQ -2%) unit.
- The announcement comes on the same day that a government-appointed Oyu Tolgoi board member unexpectedly announced his resignation, a step one analyst says could lead to "a united credible position of the Mongolian negotiations side."
Mon, Apr. 20, 5:40 PM
- Turquoise Hill Resources (NYSE:TRQ) posted production results for its Oyu Tolgoi property in Mongolia showing concentrate production down while material mined rose.
- In Q1, concentrate production slipped 30% Q/Q on lower mill head grades and a planned shutdown that was completed without incident.
- Material mined rose 16% Q/Q primarily due to productivity increases. Head grades slipped as high-grade open pit material was "largely" processed in Q4. The company expects higher-grade material starting in Q2, and production levels overall to be significantly higher in the second half.
- Turquoise Hill previously projected Oyu Tolgoi for 600K-700K ounces of gold in concentrates and 175K-195K metric tons of copper for 2015.
Turquoise Hill Resources Ltd is a mining company engaged in the operation and further development of the Oyu Tolgoi copper-gold mine in southern Mongolia, which is the Company's principal and only material mineral resource property.
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