The company blamed the rise on skilled labour supply constraints caused by covid-19 and noted the new estimate, under review by Oyu Tolgoi’s board, assumes there are no further disruptions.
Rio Tinto currently controls and operates the mine, located 550 km (342 miles) south of Mongolia’s capital Ulaanbaatar, thanks to 66% stake in Canada’s Turquoise Hill Resources (TSX, NYSE: TRQ). The government of Mongolia owns 34%.
The mining giant is currently trying to buy all the shares it doesn’t already own in Turquoise Hill.
Rio’s chief executive Jakob Stausholm has said he believe the acquisition would simplify the ownership structure, and further strengthen the company’s copper portfolio.
The offer followed an agreement between the miner and the government of Mongolia to complete the long-delayed underground expansion.
That deal saw Rio agree to write off $2.4 billion of loans and interest used by Ulan Bator to fund…
