Rio Tinto mismanagement caused cost overrun at Mongolian mine - WSJ
An expert group reviewing the cause of a $1.4-billion cost overrun at a Mongolian mine run by Rio Tinto said it was caused by the miner's mismanagement, the Wall Street Journal reported on Monday, citing a report.
Costs to expand the Oyu Tolgoi mine, Rio's biggest copper growth project, have ballooned up to $6.75-billion from Rio's original budget of $5.3-billion in 2016, and this has led to a friction over funding with Turquoise Hill.
Turquoise Hill, in which Rio has a 50.8% stake, owns 66% of Oyu Tolgoi, one of the world's largest-known copper and gold deposits. The rest is held by the Mongolian government.
The report, which was commissioned by the owners of the copper project, said the cost overrun was not due to unfavorable rock conditions as blamed by the one of world's largest miner, the WSJ reported.
"This confidential report will be considered by the OT (Oyu Tolgoi) Board and Rio Tinto will engage with the OT Board as soon as we have had the opportunity to review the report in detail," Rio Tinto said in an emailed statement.
There was no evidence that the quality of the rock and general ground conditions were significantly different to that forecast by the miner's owners in 2016, according to the report.
The WSJ report said the US Securities and Exchange Commission and British regulators were looking into the matter.
Turquoise Hill Resources did not immediately respond to a Reuters request for comment.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.
VISIT SHOWROOM
Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
