Turquoise Hill Resources Ltd announced the completion and delivery by Rio Tinto of the Definitive Estimate, which refines the analysis contained in the feasibility study underlying the Company's Oyu Tolgoi Technical ReportThe results of the Definitive Estimate includeA revised base case project development capital cost estimate of $6.75 billionConfirmation that sustainable first production is forecast to occur in October 20221Verification that all surface infrastructure required for sustainable first production is now completeAn increase in Hugo North Mineral Reserves of 10Mt, 0.18Mt contained copper and 0.07Moz contained goldThe Definitive Estimate is yet to be considered and approved by the board of directors of Oyu Tolgoi LLC. In the interim, Turquoise Hill is committed, over the coming months, to working closely with Erdenes Oyu Tolgoi LLC, the Government of Mongolia, Rio Tinto and Oyu Tolgoi LLC:To address the concerns of Erdenes and the Government of Mongolia with respect to the reasons for the cost overruns and delays to the underground development announced in 2019, including through the independent review being overseen by a Special Committee of the Oyu Tolgoi LLC board as announced on December 1, 2020To support the achievement by Oyu Tolgoi LLC and the Government of Mongolia of their joint PSFA milestones, including reaching agreement on a power purchase agreement for a state-owned power plant by March 31, 2021 and securing agreement on an extension of Oyu Tolgoi LLC's existing power import arrangements by March 1, 2021To seek clarity and stakeholder alignment on the criteria to be satisfied prior to commencement of the "undercut"2 (such as confidence in commissioning dates for the materials handling system and the extension of power import arrangements), and ensure that such criteria are met in a timely mannerTo secure stakeholder alignment on, and timely implementation of the proposed re-profiling of Oyu Tolgoi LLC's existing project loans and the raising of supplemental senior debt (as contemplated by the MOU), as well as Turquoise Hill's preferred strategy of prioritising debt and/or hybrid financing to meet Oyu Tolgoi's funding requirements.
Turquoise Hill Resources Ltd announced the completion and delivery by Rio Tinto of the Definitive Estimate, which refines the analysis contained in the feasibility study underlying the Company's Oyu Tolgoi Technical ReportThe results of the Definitive Estimate includeA revised base case project development capital cost estimate of $6.75 billionConfirmation that sustainable first production is forecast to occur in October 20221Verification that all surface infrastructure required for sustainable first production is now completeAn increase in Hugo North Mineral Reserves of 10Mt, 0.18Mt contained copper and 0.07Moz contained goldThe Definitive Estimate is yet to be considered and approved by the board of directors of Oyu Tolgoi LLC. In the interim, Turquoise Hill is committed, over the coming months, to working closely with Erdenes Oyu Tolgoi LLC, the Government of Mongolia, Rio Tinto and Oyu Tolgoi LLC:To address the concerns of Erdenes and the Government of Mongolia with respect to the reasons for the cost overruns and delays to the underground development announced in 2019, including through the independent review being overseen by a Special Committee of the Oyu Tolgoi LLC board as announced on December 1, 2020To support the achievement by Oyu Tolgoi LLC and the Government of Mongolia of their joint PSFA milestones, including reaching agreement on a power purchase agreement for a state-owned power plant by March 31, 2021 and securing agreement on an extension of Oyu Tolgoi LLC's existing power import arrangements by March 1, 2021To seek clarity and stakeholder alignment on the criteria to be satisfied prior to commencement of the "undercut"2 (such as confidence in commissioning dates for the materials handling system and the extension of power import arrangements), and ensure that such criteria are met in a timely mannerTo secure stakeholder alignment on, and timely implementation of the proposed re-profiling of Oyu Tolgoi LLC's existing project loans and the raising of supplemental senior debt (as contemplated by the MOU), as well as Turquoise Hill's preferred strategy of prioritising debt and/or hybrid financing to meet Oyu Tolgoi's funding requirements.
