Production at the concentrator of Turquoise Hill Resources’ Oyu Tolgoi Copper-Gold Project continues to ramp up and is currently running at full capacity of about 100,000 tonnes of ore per day. As at September 18, the mine had produced 160,000 tonnes of concentrate and shipped about 38,000 tonnes to the bonded warehouse in China with 122,000 tonnes held in inventory at Oyu Tolgoi.
Concentrate from Oyu Tolgoi is the first of its kind to be shipped across the Gangquimadou bilateral border between Mongolia and China. Oyu Tolgoi has established the logistics process with Mongolian customs officials enabling concentrate to be delivered to the bonded warehouse in China.
Oyu Tolgoi’s customers are engaged with Chinese customs officials to receive the necessary approvals to enable them to collect purchased concentrate from the warehouse. Turquoise Hill expects that once the necessary approvals are in place, the withdrawal of concentrate from the warehouse by customers will quickly ramp up.
Oyu Tolgoi has begun to receive payments from customers, however as revenue is recognized when customers withdraw concentrate from the warehouse, to date Oyu Tolgoi has not recorded any revenue.
Production has not been impacted while customers work through the Chinese customs process. Turquoise Hill continues to expect Oyu Tolgoi sales to be aligned with production rates by the end of this year.
Turquoise Hill is an international mining company focused on copper, gold and coal mines in the Asia Pacific region. The company’s primary operation is its 66% interest in the Oyu Tolgoi copper-gold-silver mine in southern Mongolia. Other assets include a 58% interest in Mongolian coal miner SouthGobi Resources, a 56% interest in copper-gold miner Inova Resources, formerly Ivanhoe Australia, and a 50% interest in Altynalmas Gold, a private company developing the Kyzyl Gold Project in Kazakhstan, which is in the process of being sold.