Mongolia:opportunities in the mining industry

Mongolia:opportunities in the mining industry

The Embassy of the Netherlands to China and Mongolia identified a business opportunity in the mining industry in Mongolia. The so-called Oyu Tolgoi (OT) second phase is a US$6.8 billion project for the development, construction and operation of a deep-underground copper mine. The location of the copper, gold, silver and molybdenum deposit is in the southern Gobi region of Mongolia, approximatly 100km from the border with China.

The operating company, Oyu Tolgoi LLC - a Rio Tinto subsidiary - is currently producing and exporting copper concentrate from a developed open pit mine, but the best minerals and 80% of the value lie deep underground.

The second phase is the construction of the complex underground mine, using block-caving mining techniques to remove the ore before it is transported to the surface and to the concentrator. 14 kilometres of lateral tunnels have already been constructed. Over time, up to 200 kilometres of tunnels, at depths of up to 1,300 metres, will be built to allow mining of the deepest parts of OT’s ore body.

The construction will take approximatly 7 year and will commence in Q2 2016. The completed mine will increase the national GDP of Mongolia by 30%.