Exports start rolling from the $6.2 billion Mongolian Oyu Tolgoi mine

SYDNEY (Scrap Monster) : Mining major Rio Tinto has started copper exports from the Mongolian Oyu Tolgoi mines, with first consignment of copper concentrates shipped out of the mines on Friday.

Rio Tinto had arranged an opening ceremony to mark the first shipment on June 14^th. The global miner had been caught in negotiation deadlock with Mongolian government over rising cost concerns.

The flow of copper concentrates out of the huge mine is reported to offset the production losses due to supply disruptions  at the landslide-hit Utah Bingham Canyon copper mines in the US and accident-hit Indonesian Grasberg mine. Rio Tinto counts on the Mongolian copper mine to make up the huge losses from its US and Indonesian operations.

Mongolian Government had signed a deal in 2009 with Rio Tinto-the owner of the mine and Turquoise Hill Resources-the operator appointed by Rio Tinto. As per the deal, Mongolia has 34% stake in the project, which may be further raised to 50% upon 30 years of operation of the mine. The 66% stake is held by Rio Tinto. Turquoise Hill is believed to have made around $ 6 billion investment in the mines so far.

Oyu Tolgoi contains approximately 46 billion pounds of copper and 25 million ounces of gold in measured and indicated resources and an additional 55 billion pounds of copper and 37 million ounces of gold in inferred resources.