Turquoise Hill forecasts lower Oyu Tolgoi gold output in 2016
JOHANNESBURG (miningweekly.com) – Gold production from the Oyu Tolgoi mine, in Mongolia, would be materially lower in 2016, compared with the forecast output for 2015, owing to the mining of lower-grade gold areas, owner Turquoise Hill Resources reported on Tuesday.
In its 2016 production and financial guidance, the Canadian company stated that the mine would produce between 210 000 oz and 260 000 oz of gold in concentrates in 2016. This compared with the 2015 gold production forecast of between 600 000 oz and 700 000 oz of gold in concentrates.
The majority of 2016’s gold production would occur in the first half of the year.
Oyu Tolgoi’s copper production was forecast to remain steady at between 175 000 t and 195 000 t.
Turquoise Hill said it expected its operating cash costs for 2016 to be about $800-million, compared with expected operating cash costs of $900-million for 2015. The year-on-year reduction was mainly owing to additional capitalisation of Phase 4 deferred stripping costs.
Capital expenditures for 2016 on a cash-basis, excluding underground development, were expected to be about $300-million, of which about $280-million related to sustaining capital.
Turquoise Hill would provide capital guidance for its underground development once a final 'notice to proceed' decision was confirmed. Turquoise Hill owner Rio Tinto and the government of Mongolia in May 2015 signed an underground mine development and financing plan in May this year, which addressed outstanding shareholder matters.
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