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AsIA

A two-tranche placement to raise $12 million was announced
in August by Xanadu
copper orebodies and the trigger [price] Hugo Dummett North underground mine at [Ltd], which are both TSX-listed. So, you
to start building new mines is $US3.50/lb,” Oyu Tolgoi was included in the study, which have one of the biggest gold investors in-
Stewart said. also confirmed that the caving method of vesting in Mongolia,” Stewart said.
“The long-term fundamentals of copper mining is suitable. “We were able to bring on some very
are good on the back of the shift to clean Meanwhile, the underground schedule good domestic institutions into this raising
energy, batteries and EVs. We are making and costs as previously announced re- which was very pleasing. I think people
good progress at Red Mountain [420km mained for Oyu Tolgoi, meaning a delay are starting to look at Mongolia and maybe
south-east of Ulaanbaatar] where we are of 21-29 months for first sustainable pro- some of the issues around Oyu Tolgoi are
working under JV with JOGMEC, which is duction compared to the original feasibility Rio Tinto issues, it is not about the country.
positive for Mongolia with the Japanese in- study guidance in 2016 and an increase of “It is not the country delaying the pro-
vesting in our project. The Japanese have $US1.3-1.8 billion from the original $US5.3 gress of the project, in fact to the contrary,
always had a steady supply of copper and billion development capital. they are an equity holder in the project and
haven’t invested in exploration for a decade Detailed study, design, engineering and want to see it go into production. The under-
or so and it shows that Japan is prepared to optimisation work is ongoing to support the ground delays and capex aren’t Mongolia’s
invest in the future supply of copper.” definitive estimate of Panel 0 for the devel- issues.
Not long ago, there were few prepared opment of Oyu Tolgoi is due to be com- “I think that is the whole thing, people
to contemplate investing in Mongolia given pleted in the second half of 2020, with Rio have been saying that the relationships are
the perceived difficulty of doing business Tinto stating that delays and costs could be not good and now we know why it is not
in country as headlined by Rio Tinto Ltd’s subjected to ongoing COVID-19 matters. good because there is a capex blowout and
struggles at Oyu Tolgoi. “Mongolia is a place that hasn’t seen a time delay and Mongolia had to buy that
In July, Rio Tinto advised it had com- lot of investment in the last few years with equity.”
pleted an updated feasibility study on Oyu the ongoing issues at Oyu Tolgoi. But Eric
Tolgoi and was in the process of submitting Sprott has put $C15 million into gold com- – Mark Andrews
it to the Government. pany Erdene [Resource Development
A new mine design for Panel 0 of the Corp] and $C15 million into Steppe Gold

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