Connect with us

Hi, what are you looking for?

Thursday, Feb 9, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Mining

Rio Tinto acquires one of the world’s largest copper and gold deposits

The company now owns a 66% share in the Mongolia site

Rio Tinto acquires Turquoise Hill and Mongolian mining project
Oyu Tolgoi Mine, Mongolia. Photo via Rio Tinto

United Kingdom-based Rio Tinto Ltd (ASX: RIO) now owns a majority stake in one of the world’s largest copper and gold deposits after acquiring the Montreal mining company Turquoise Hill Resources Ltd. (TSX: TRQ) (NYSE: TRQ).

On Friday, the companies announced news of the $3.1 billion transaction which will give Rio Tinto a 66 per cent interest in the Oyu Tolgoi Mine in Mongolia, formerly Turquoise Hill’s primary operation. The country’s government owns the remaining 34 per cent.

The transaction closed after receiving approval from Canada’s Yukon court and the majority of Turquoise Hill’s minority shareholders.

Read more: Calibre Mining high-grade gold drill positive results to continue at Panteon North, say analysts

Read more: Calibre releases short doc on environmental initiatives in Nicaragua

The Oyu Tolgoi mining site produced 42,716 ounces of gold in Q3 this year and generates approximately 175,000 ounces per annum.

Eighty per cent of the site’s value is underground and open-pit mining at Oyu Tolgoi has been ongoing since 2011. The site is capable of producing 500,000 tonnes of copper annually, the equivalent of what would be needed to construct 1,580 wind turbines per day or 16,400 electric vehicles.

Vancouver-based Northern Dynasty Minerals’ (TSE: NDM) Pebble Project in Alaska is another one of the world’s largest gold deposits. The site produces approximately 363,000 ounces of gold per year and 1.8 million ounces of silver.

Escondida and Collahuasi in Chile are examples of other major copper deposits in the world.

Following the acquisition, Turquoise Hill will be delisting its common shares from the Toronto Stock Exchange and New York Stock Exchange.

“Oyu Tolgoi is an outstanding asset with incredible people that will deliver significant long-term value for Rio Tinto and Mongolia,” said Jakon Stausholm, CEO of Reo Tinto.

Rio Tinto stock went up by 0.8 per cent today to AUD$114.55 on the Australian Securities Exchange.

 

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Rowan Dunne on Twitter

rowan@mugglehead.com

 

 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

AI and Autonomy

By using remote tools, companies can save time, be less invasive and create fewer holes in the area being explored

Gold

The budget will be utilized for 100 km of drilling focused on resource expansion and discovery

Gold

Gold cyanide demonstrated a weighted average of 86.7 per cent across 986 samples

Gold

Ongoing conflict has blunted gold production in the West African nation