Turquoise Hill Commits to New Coal-fired Power Plant for Oyu Tolgoi
Under the 2009 Investment Agreement (IA) between Turquoise Hill, the government of Mongolia and Rio Tinto, and the subsequent Power Source Framework Agreement signed in 2018, the company must secure a domestic power source for the mine by June 30, 2023. Rio Tinto, which owns 50.8% of Turquoise Hill Resources and manages the mine, said it is also progressing alternative options to source domestic power, including a renewable power component.
Rio Tinto Copper and Diamonds Chief Executive Arnaud Soirat said, “Rio Tinto, Turquoise Hill and the government of Mongolia are all committed to securing a reliable and long-term domestic power source for the Oyu Tolgoi mine and are working together to achieve this.” The TTPP Feasibility Study envisages a 300-MW power plant with a project cost estimate of around $924 million. This is already included in the group capex guidance of $7 billion in 2020 and $6.5 billion each in 2021 and 2022.