RIO TINTO - LOANS

CEO of “Erdenes Oyu-Tolgoi Company” D.Ganbold said – We will undertake 80% of the Oyu-Tolgoi (Phase 2) underground mine preliminary work. For this reason, USD 6 billion investment is required to construct the underground mine for the period to 2016, USD 9 billion to 2017, and USD 4.2 billion for initial work.

Currently, stockholders are currently discussing  terms with 15-20 creditors. If the agreements go successfully, it is hoped that the initial investment for the Oyu-Tolgoi underground mine will be obtained this year.

Prime Minister Ch.Saikhanbileg and others noted – It is possible to obtain loans from foreign banks, and financial organizations. Also, Rio-Tinto has expressed that they will be 100%  responsible for the credit voucher obtained  from the foreign banks.

Rio-Tinto is expecting that market demand for copper will increase during 2017-2018. This is because it is forecasted that copper use India and South Eastern Asian countries is very likely to increase.

If approval of the Oyu-Tolgoi underground mining plan is granted, Mongolia can expect to receive USD 30-40 million to Mongolia before the Naadam Celebration (July 11^th).  Also, “Erdenes MGL Company” has calculated that Mongolia will receive USD 1 billion annually.

Source: news.mn