Rio Tinto shifts focus at Oyu Tolgoi

Rio Tinto will commence work under a revised mine plan at its Oyu Tolgoi copper-gold operation in Mongolia.

This is following board approval of a new approach that pauses development in the Entrée Resources joint venture area.

The joint venture, 66 per cent owned by Rio Tinto and 34 per cent by the Government of Mongolia, is ramping up underground production, with the miner maintaining its 2025 copper production guidance of 780,000 to 850,000 tonnes.

Panel 1 which includes the Entrée joint venture area, was previously set to support production from 2027. However, that timeline is now subject to the resolution of licensing matters.

“Transferring the licences for the Entrée joint venture area will maximise the value Oyu Tolgoi delivers for all parties, and we are continuing to work with the Government of Mongolia and Entrée Resources towards this outcome,” Rio Tinto copper chief executive Katie Jackson said.

“Transferring the licences for the Entrée joint venture area will maximise the value Oyu Tolgoi delivers for all parties, and we are continuing to work with the government of Mongolia and Entrée Resources towards this outcome,” she said.

“Our understanding of the ore body is growing as production and development progresses, further increasing our confidence and flexibility.

“With lateral development work only just beginning in panel 1, this is the right time to pivot and bring forward development in panel 2 south to maintain our options.”

While development in the Entrée area is paused, limited activity will continue in other parts of Panel 1, and resources are being redeployed to panel 2 south, which lies outside the joint venture.

Oyu Tolgoi is projected to produce an average of 500,000 tonnes of copper per year from 2028 to 2036, with flexibility to bring either panel 1 or panel 2 south into production first, depending on the timing of licence transfers.

Rio Tinto chief executive Jakob Stausholm has previously described the development of Oyu Tolgoi as remarkable to witness.

“In March I visited the underground mine with the Mongolian President, who described it as one of the most exciting developments he has ever seen,” he said.