Agreement is Reached for Long-term Power Supply for Oyu Tolgoi


Rio Tinto, Turquoise Hill and the Government of Mongolia have reached an agreement on the preferred domestic power solution for Oyu Tolgoi that paves the way for the government to fund and construct a state-owned power plant at Tavan Tolgoi. The agreement, which is a revision of the Power Source Framework Agreement (PSFA) signed in 2018, said they would all will work toward finalizing a Power Purchase Agreement by the end of March 2021. In addition, the amended PSFA sets a proposed timetable for development, with construction of the coal-fired power plant set to begin no later than July 1, 2021, and commissioning within four years thereafter.

Oyu Tolgoi currently uses imported power. “This agreement provides a potential pathway to securing a domestic power supply for the Oyu Tolgoi mine and underground project for the benefit of all shareholders and the wider community,” Copper and Diamonds Chief Executive Arnaud Soirat said. “We look forward to working with the Government of Mongolia to progress the solution.”


As featured in Womp 2020 Vol 07 - www.womp-int.com