Former Leader of Democratic Party Z.Enkhbold noted at the press statement made last week "Financial sector crisis is not a brand new thing. We have talked many times about it". Indeed, rumour spread among the public that the new Prime minister is the most unlucky one.
According to the statement by the Finance Minister, we have negative outlook for the economic situation and it is expected not to be saved within next four years.
Previous authorities announced that the development of the underground mine at Oyu Tolgoi has officially began. The country is back to the business and approved 4.4 billion USD financing.
Positive expectation created among the public that when it would boost the economy.
However, Former Leader of Democratic Party Z.Enkhbold stated "Oyu Tolgoi is paying down Rio Tinto loans, not Mongolian loans in accordance with the agreement. We will receive USD 1 billion financing and it will be funded to the development of the underground mine".
66% interest in Oyu Tolgoi is controlled by the Turquoise Hill Resources and 34% interest in the project is acquired by the Government of Mongolia. Oyu Tolgoi received USD 7 billion loan from Rio Tinto Group. The Government of Mongolia have not made investment to the project until today. Rio Tinto and Turquoise Hill Resources recover all the costs of the project. Oyu Tolgoi has paid the USD 4.1 loans with the USD 4.4 billion financing provided by the 22 international banks and financial institutions in Dec, 2015 and now it has an outstanding debt of USD 2.9 billion.
According to the Oyu Tolgoi Underground Mine Development and Financing Plan, the table below sets forth the indicative development and spending plan, including estimates of funds that will be spent within Mongolia to fund operating costs, Underground Stage construction and payments to the Government of Mongolia.
The table is based on a number of assumptions relating to scope, costs, schedule, technical aspects and market conditions on which the projections contained in the UG FS are based. Estimated domestic Mongolian expenditures are based on historical Oyu Tolgoi experience and current development plans, however are subject to suitable quality, cost-effective, domestic suppliers. All amounts are estimates as of the current point in time and are not guaranteed; actual amounts will undoubtedly vary from these estimates.
Oyu Tolgoi LLC announced its financial results for the quarter ended June 30, 2016, and released its latest Performance Scorecard.
HIGHLIGHTS
- Strong safety and production performance
- US$126m taxes paid over the quarter
- US$136m in national procurement spend
- Oyu Tolgoi achieved an excellent safety performance with an All Injury Frequency Rate of 0.13 per 200,000 hours worked for the six months ended June 30, 2016.
- In June 2016, Oyu Tolgoi signed a critical contract with Jacobs Engineering Group to provide engineering, procurement and construction management services for underground development.
- Major contractor mobilisation for the sinking of Shafts #2 and #5, underground development, critical construction works and maintenance are all progressing.
- Oyu Tolgoi recorded revenue of $329.7 million in Q2’16, a decrease of 22.0 per cent over Q1’16, reflecting mainly lower gold sales.
- Concentrate volumes sold in Q2’16 increased 6.7 per cent over Q1’16.
- In Q2’16, concentrator throughput was broadly consistent with Q1’16; resulting in average throughput of approximately 105,000 tonnes per day for the quarter.
- Copper production in Q2’16 declined 10.3 per cent over Q1’16 reflecting lower grades from reduced mining in Phase 2 and relative lower recovery from Phase 6 ore.
- As expected, gold production in Q2’16 declined approximately 52 per cent over Q1’16, due to lower grades from reduced mining in Phase 2.
- Sales contracts have been signed for essentially all of Oyu Tolgoi’s expected 2016 concentrate production.
Photo credit: MPA.mn
Former Leader of Democratic Party Z.Enkhbold noted at the press statement made last week "Financial sector crisis is not a brand new thing. We have talked many times about it". Indeed, rumour spread among the public that the new Prime minister is the most unlucky one.
According to the statement by the Finance Minister, we have negative outlook for the economic situation and it is expected not to be saved within next four years.
Previous authorities announced that the development of the underground mine at Oyu Tolgoi has officially began. The country is back to the business and approved 4.4 billion USD financing.
Positive expectation created among the public that when it would boost the economy.
However, Former Leader of Democratic Party Z.Enkhbold stated "Oyu Tolgoi is paying down Rio Tinto loans, not Mongolian loans in accordance with the agreement. We will receive USD 1 billion financing and it will be funded to the development of the underground mine".
66% interest in Oyu Tolgoi is controlled by the Turquoise Hill Resources and 34% interest in the project is acquired by the Government of Mongolia. Oyu Tolgoi received USD 7 billion loan from Rio Tinto Group. The Government of Mongolia have not made investment to the project until today. Rio Tinto and Turquoise Hill Resources recover all the costs of the project. Oyu Tolgoi has paid the USD 4.1 loans with the USD 4.4 billion financing provided by the 22 international banks and financial institutions in Dec, 2015 and now it has an outstanding debt of USD 2.9 billion.
According to the Oyu Tolgoi Underground Mine Development and Financing Plan, the table below sets forth the indicative development and spending plan, including estimates of funds that will be spent within Mongolia to fund operating costs, Underground Stage construction and payments to the Government of Mongolia.
The table is based on a number of assumptions relating to scope, costs, schedule, technical aspects and market conditions on which the projections contained in the UG FS are based. Estimated domestic Mongolian expenditures are based on historical Oyu Tolgoi experience and current development plans, however are subject to suitable quality, cost-effective, domestic suppliers. All amounts are estimates as of the current point in time and are not guaranteed; actual amounts will undoubtedly vary from these estimates.
Oyu Tolgoi LLC announced its financial results for the quarter ended June 30, 2016, and released its latest Performance Scorecard.
HIGHLIGHTS
- Strong safety and production performance
- US$126m taxes paid over the quarter
- US$136m in national procurement spend
- Oyu Tolgoi achieved an excellent safety performance with an All Injury Frequency Rate of 0.13 per 200,000 hours worked for the six months ended June 30, 2016.
- In June 2016, Oyu Tolgoi signed a critical contract with Jacobs Engineering Group to provide engineering, procurement and construction management services for underground development.
- Major contractor mobilisation for the sinking of Shafts #2 and #5, underground development, critical construction works and maintenance are all progressing.
- Oyu Tolgoi recorded revenue of $329.7 million in Q2’16, a decrease of 22.0 per cent over Q1’16, reflecting mainly lower gold sales.
- Concentrate volumes sold in Q2’16 increased 6.7 per cent over Q1’16.
- In Q2’16, concentrator throughput was broadly consistent with Q1’16; resulting in average throughput of approximately 105,000 tonnes per day for the quarter.
- Copper production in Q2’16 declined 10.3 per cent over Q1’16 reflecting lower grades from reduced mining in Phase 2 and relative lower recovery from Phase 6 ore.
- As expected, gold production in Q2’16 declined approximately 52 per cent over Q1’16, due to lower grades from reduced mining in Phase 2.
- Sales contracts have been signed for essentially all of Oyu Tolgoi’s expected 2016 concentrate production.
Photo credit: MPA.mn